No loan moratorium yet, RBI Governor
The Reserve Bank of India (RBI) on Thursday announced it will provide a debt resolution window to allow lenders to implement a resolution plan regarding qualifying business exposures as well as personal loans, keeping the property unchanged and without classifying them as non-performing loans.
RBI Governor Shaktikanta Das also said a moratorium on loan repayments is not needed at this time, saying businesses are better prepared to deal with the situation. It can be noted that the RBI announced a six-month moratorium at the start of the national lockdown last year to help borrowers affected by a downturn in economic activity.
The entire state of Maharashtra is blocked for non-essential services and localized and overnight blockages are seen in many pockets of the country, including the nation’s capital, to limit the increase in cases. “Under current conditions, a moratorium is not necessary,” Das said when interacting with reporters after the announcement of the first monetary policy review of the new fiscal year. He said that companies, especially those in the private sector, are better prepared today to deal with the situation and continue to operate.
Calling the moratoriums on term loans a “conventional” instrument, which is akin to a standard operational tool, Das recalled that the RBI has taken a host of innovative measures over the past year to help the economy. in the pandemic.