RBI may not extend moratorium on repayment on bank loans beyond Aug 31

The Reserve Bank is unlikely to extend the moratorium on repayment of bank loans beyond August 31 as an extension could impact the credit behaviour of borrowers without resolving the issues being faced following the outbreak of the COVID-19.

The RBI had announced a moratorium for six months beginning March



1, 2020 to help businesses and individuals tide over the financial problems. The RBI Governor had recently said that while the moratorium on loans was a temporary solution, the resolution framework is expected to give durable relief to borrowers facing COVID-19-related stress.