RBI On Loan Moratorium Plea

RBI and the finance ministry are yet to to clarify whether it is mandatory for banks to grant moratorium on instalments of term-loans to all non-banking finance companies (NBFCs) or if banks can exercise discretionary power to grant such benefit. Haryana chapter of Confederation of Real Estate Developers’ Associations of India (Credai) had alleged confusion over whether NBFCs and Housing Finance Companies (HFCs) are also eligible for the loan moratorium announced by the central bank on March 27. It said there was no clarity as to whether real estate developers were also entitled to the loan moratorium policy or not. Credai also demanded that the current RBI moratorium be made mandatory, not discretionary, for all banks, NBFCs and HFCs. Solicitor General Tushar Mehta said he would seek instructions on the matter from the RBI and inform the court of its stand.