NBFCs to face liquidity crunch on lack of clarity on RBI moratorium: Crisil

RBI had announced a relief package which included a three-month moratorium on payment of all term loans outstanding as on March 1, 2020

Non-banking finance companies are likely to face liquidity challenges due to lack of clarity on the applicability of the Reserve Bank's moratorium on their bank loans and poor collection due to the nationwide lockdown, says a report.

According to a report by rating agency CRISIL, Non-banking finance companies (NBFCs) face a double whammy because they are offering moratorium to customers despite not getting one themselves from their lender-banks.

"Given the challenges in access to fresh funding, and presuming nil collections, a number of NBFCs will face liquidity challenges if they do not get a moratorium on servicing their own bank