RBI may extend loan repayment for struggle sectors ending moratorium

RBI may extend loan repayment for struggle sectors ending moratorium . RBI may extend loan moratorium for some struggling sectors like aviation, hospitality etc. The moratorium will end by August 31st which the RBI gave in March for six months in the wake of COVID-19.

The information has been given by the two people aware of the talks between RBI and banks.

Bank regulators are assessing the impact on sectors and borrowing segments during lockdown.

While it’s a foregone conclusion that the moratorium will be extended for certain segments beyond August, the fine print is still a work in progress.For starters, RBI is of the view that some sectors will continue to need support from lenders as the current economic pain is expected to linger for them.

 

 

Said one of those person.

The prolonged lockdown has forced many firms to shut operations ,rederning millions of people jobless.

We are in intense engagement with RBI for a one-time restructuring of debt and finances for businesses. The process to ascertain the level of stress, whether Stress 1 or Stress 2 or NPA is underway.

Said Finance Minister,Nirmala Sitaraman. The government and RBI are considering to restructure company loans.