Exemptions given to flood victims for repayment of loans: RBI

The Madras High Court was told by Reserve Bank of India that a circular has been issued by it for various banks regarding exemption given for people in the flood-affected areas of Tamil Nadu for repayment of different loans taken by them.
The submission was made by the counsel for RBI before the first bench comprising Chief Justice Sanjay Kishan Kaul and Justice M M Sundresh recently stating a moratoriumof different lengths of period of time was given depending on the nature of the loans.
The submission was made when a PIL by one M Hyder Ali in Kancheepuram district to grant more time for the rain-affected persons for repayment of loans taken by them came up for hearing.

The counsel also produced the copy of the circular issued on December 18last year.
One-year moratorium was given for repayment of housing loans in Thiruvallur, Chennai, Kancheepuram and Cuddalore districts and for vehicle loans six months suspension for repayment, the counsel informed the bench.
The counsel submitted that for education loans a moratorium of six months was given for areas where repayment has commenced.

The interest rates chargeable for all these type of loans will be the base rate, it submitted.
The overdraft under PMJDY may be increased up to Rs 10,000 as against the present level of maximum of Rs 5000, it said.

Fresh loans for purchase of household articles damaged due to floods would be increased up to Rs one lakh as against the originally proposed limit of Rs 10,000 at concessional rate.
A communication had also been issued onDecember 25last year by the state government notifying that the union government has declared the devastation caused due to torrential rains and floods in Tamil Nadu as calamity of severe nature, the circular added.
"In view of the aforesaid stand of RBI, the PIL is closed", the bench said.