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Banks face operational hurdles in implementing 90-day loan moratorium

With branches and call centres working with skeletal staff, communicating to customers and documenting the process are key challenges

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Bankers anticipate operational challenges with respect to communicating the Reserve Bank of India's (RBI’s) dispensation to customers

Hamsini Karthik

3 min read Last Updated : Mar 29 2020 | 11:54 PM IST

The 90-day moratorium on all term loans given to customers is a big relief for banks as well as borrowers, but the initial feedback from the industry is that the documentation process may entail some hardships.

Bankers anticipate operational challenges with respect to communicating the Reserve Bank of India’s (RBI’s) dispensation to customers, documenting their consent to exercise the option and the requisite paperwork that comes along with it. In the context of the nationwide lockdown and banks operating on bare-bone infrastructure, bankers say some of the basic processes could be difficult to implement in the current scenario. For instance, most

Topics : Coronavirus Lockdown Banks Loan repayment Reserve Bank of India

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