Business Standard

RBI extends loan moratorium till Aug 31, silent on one-time restructuring

The central bank has increased group exposure limits of lenders from 25% to 30%

Banks, firms work on strategy for transition from LIBOR to new benchmark
Premium

In the past, banks have been hesitant in extending the moratorium facility to NBFCs and only a few have extended moratorium to NBFCs on the loans they have availed from banks

Subrata PandaAbhijit Lele Mumbai
Allowing borrowers more time to repay loans, the Reserve Bank of India (RBI) on Friday extended the moratorium on EMI payments by another three months, till August-end, taking the total moratorium period to six months.
 
It also extended the deferment of interest payment on working capital loans till August 31. On March 27, the RBI had provided a three-month moratorium on all term loans (from March 1 to May 31). Krishnan Sitaraman, senior director, CRISIL Ratings, said banks will have to monitor borrower behaviour. “Six months of continuous non-payment of debt obligations can result in some element of credit indiscipline

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 22 2020 | 5:11 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com