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By SRELJ Bureau

RBI Governor on 22nd May 2020 announced a further moratorium period of three months. the statement said :

“The RBI had earlier, on two separate occasions (March 27 and April 17, 2020), announced certain regulatory measures pertaining to (a) granting of 3 months moratorium on term loan installments; (b) deferment of interest for 3 months on working capital facilities; (c) easing of working capital financing requirements by reducing margins or reassessment of working capital cycle; (d) exemption from being classified as ‘defaulter’ in supervisory reporting and reporting to credit information companies; (e) extension of resolution timelines for stressed assets; and (f) asset classification standstill by excluding the moratorium period of 3 months, etc. by lending institutions.

In view of the extension of the lockdown and continuing disruptions on account of COVID-19, the above measures are being extended by another three months from June 1, 2020 till August 31, 2020 taking the total period of applicability of the measures to six months (i.e. from March 1, 2020 to August 31, 2020). The lending institutions are being permitted to restore the margins for working capital to their original levels by March 31, 2021. Similarly, the measures pertaining to reassessment of working capital cycle are being extended up to March 31, 2021”.: RBI Governor Statement on 22/5/2020.

One thought on “RBI Governor announces further moratorium period of three months for Home loans and other loans”
  1. Government had announces moratorium now from June 1st to August 31st how all this will help us as all the banks are telling us that they are going to penalized with 24% of interest after lockdown.personally got a call from IDFC Bank ICICI Bank HDFC Bank then how come the government can say the same.

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