Don't extend loan moratorium, it is being misused, Deepak Parekh urges RBI

Says some able borrowers are using it to deliberately delay payments

HDFC Chairman Deepak Parekh made a strong plea to the Reserve Bank of India (RBI) on Monday, not to extend the moratorium beyond August because some borrowers, who otherwise have the ability to pay, are taking advantage of the relaxation.

Refraining from responding to the call, RBI Governor Shaktikanta Das said there was much interest in Parekh’s suggestions. He added that while he had taken note of them, he would not comment immediately. The governor was interacting with members of the Confederation of Indian Industry (CII).

In March 2020, the RBI extended the moratorium as a step to mitigate the burden of