( Kajal Singh, intern journalist):
New Delhi: With the implementation of Lockdown 3.0 in the country, the Reserve Bank of India is considering a proposal to extend the moratorium (moratorium) on bank loans for three more months. The RBI is considering this to help people and industries affected by the nationwide lockdown implemented to prevent the spread of coronavirus infection. According to sources, suggestions have been received from several places, including the Indian Banks Association, to pursue the moratorium and the RBI is actively considering it.
According to sources, the continuation of the nationwide lockdown would not open up sources of income.
Sources said that in this situation, many institutions and a large number of people will not be able to repay their loans after the moratorium period ends on 31 May. A Public Sector Bank official said that extending the moratorium by the RBI for another three months would be a practical step. The official said that it would be helpful for both the borrowers and the bank in this critical time.
The Reserve Bank of India (RBI) on 27 March allowed banks and financial institutions to offer customers a three-month moratorium on payment of installments on all existing term loans. The RBI had said, “All commercial banks, co-operative banks, all India financial institutions, and non-banking financial companies were allowed to hold up to three months in payment of all term loan installments as on March 1, 2020.
As a result of this moratorium, the EMIs of people’s loans have not been deducted from their bank accounts, so that they have sufficient liquidity. When the moratorium is completed for three months, the loan installments will be deducted from the account. Now, if the RBI decides to extend the moratoriums for three more months, then the borrowers can get this benefit for three more months.’
RBI Governor Shaktikanta Das had a meeting with the public sector and private sector banks on Saturday, in which the issue of loan moratorium was also reviewed. Significantly, since Monday, the government has extended the nationwide lockdown for two weeks, i.e. until May 17, with some relaxation. However, the government has given a lot of relaxation in lockdown according to red, orange, and green zones.