RBI permits banks to allow 3 month moratorium on EMIs on all term loans

NEW DELHI: Due to lockdown, RBI has permitted banks to allow 3 month moratorium on EMIs on all term loans

The announcement comes as a relief for both banking institutions and borrowing parties.

PIB sent out a tweets on this:

https://twitter.com/PIB_India/status/1243407716678111235

On the impact of COVID-19 pandemic on Indian economy, Shaktikanta Das, Governor, Reserve Bank of India, said, "The macro economic fundamentals of the Indian economy are sound, and in fact stronger than what they were in the aftermath of the global financial crisis of 2008-09."

He also said that priority is to undertake strong and purposeful action to protect domestic economy and that there is a need for all stakeholders to fight against the pandemic and banks should do all they can to keep credit flowing.

Prime Minister Narendra Modi had announced nationwide three weeks lockdown starting from Tuesday midnight. All States and Union Territories will come under its purview.

Stating that “the next 21 days will be very crucial for India”, the Prime Minister added in a live telecast on Tuesday night, “We are taking all steps to ensure continuous supply of essential commodities. In view of the current situation, the nationwide complete lockdown will be in place for 21 days — three weeks. Today India is at the stage where our actions today will decide that to what extent we can bring down the impact of this disaster. This is the time to strengthen our resolve again and again.

He said this is an essential step to fight coronavirus decisively. He added that saving lives is priority as of now.

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