Can't extend loan moratorium as it may affect credit discipline: RBI to SC

RBI said, a long moratorium exceeding six months can impact the credit behaviour of borrowers and increase the risks of delinquencies post resumption of scheduled payments

The Reserve Bank of India, in an affidavit, filed before Supreme Court in the loan moratorium case, said that it would not be possible to give more time as a relief for sectors hit by the coronavirus pandemic.

The Centre made it clear that further relief is not possible beyond waiver of interest-on-interest for certain categories of loan account having borrowing up to  Rs 2 crore.

In the affidavit, RBI told Supreme Court, “Resolution Framework issued by the Reserve Bank on August 6, 2020 is aimed at facilitating revival of real sector activities and mitigating the impact on the