Mumbai: In order to provide relief to the common man in the difficult times of the corona epidemic and lockdown, a system of relaxation in EMI i.e. Loan Moratorium was implemented. As the lockdown increased, so did the Loan Moratorium. The latest news is that the loan Moratorium expires on August 31. That is, if one needs a discount to fill EMI on their home loan or other loans, then they have the last chance till Monday. The question is whether Loan Moratorium will be extended once again. It has to be decided by the Reserve Bank of India (RBI) and according to media reports, RBI is no longer in favor of increasing the Loan Moratorium.
According to information, the RBI considered increasing the Loan Moratorium, but has now decided against it as it is believed that this will affect the credit behavior and may increase loan defaulters. RBI sources said that restructuring of loan accounts is a better option to deal with bad loans in the long term, which banks are working on.
Earlier on Thursday, RBI Governor Shaktikanta Das said that the Loan Moratorium was a temporary solution, while a resolution framework would provide durable relief to borrowers facing difficulties in the Corona era.
At the same time, banks also expressed inconvenience in extending the time limit of Loan Moratorium. Leading bankers like Housing Development Finance Corp Chairman Deepak Parekh, SBI Chairman Rajneesh Kumar and Kotak Mahindra Bank MD Uday Kotak had said that some borrowers who have the ability to pay are taking advantage of the rebate and hence loan now. Moratorium should not be enlarged.
