Moratorium Date Extension Unviable: RBI

The Reserve Bank of India (RBI), told the Supreme Court that extending the date of the loan moratorium is “not viable”. The lending institutions shall frame board-approved policies pertaining to implementation of viable resolution plans for eligible borrowers under th

BY Realty Plus
Published - Saturday, 12 Dec, 2020

The Reserve Bank of India (RBI), told the Supreme Court that extending the date of the loan moratorium is “not viable”. The lending institutions shall frame board-approved policies pertaining to implementation of viable resolution plans for eligible borrowers under this framework, ensuring that the resolution under this facility is provided only to the borrowers having stress on account of Covid-19, the RBI submitted. The RBI told the court it had issued the framework of August 6 with the aim of facilitating the revival of real sector activities and mitigating the impact on the ultimate borrowers, which were financially affected due to Covid-19. The lending institutions, guided by their respective board-approved policy, would prepare viable resolution plans for eligible borrowers. But lenders would ensure that this resolution was provided only to the borrowers stressed on account of the pandemic,.