Will the moratorium move beyond August? The RBI left it to the banks

New delhi date. Monday 24 August 2020

The RBI is to take a final decision on the loan moratorium. Some people are demanding an increase in this. A large number of people there are in favor of ending this immediately. In particular, the bank is no longer in favor of extending the moratorium from August. Currently, people are getting the benefit of the moratorium till August.

RBI Governor Shaktikant Das said it was up to the banks to decide who should be given the moratorium and who should not. He said the moratorium was a temporary solution. It is necessary to find a permanent solution because of the moratorium. The resolution has replaced the moratorium.

The moratorium was implemented in March

A lockdown was imposed in March due to the Corona crisis. Businesses were closed due to the lockdown. Many people were in a position to not pay the EMI of the loan. In view of this, on the order of the Reserve Bank of India, a time limit of 6 months was given to the banks for non-payment of EMI, but now the central bank is being appealed that the moratorium will not be extended.

The Central Reserve Bank has extended the moratorium facility till August 31. On March 27, the RBI first asked Moratorium to avoid EMI payments from banks. Banks then allowed their customers to avoid EMI payments for 3 months. Again this exemption has been extended for an additional 3 months i.e. till 31st August.