In the loan moratorium case, RBI has informed that it’s not possible to add more relief including the already announced relief package. The government has already agreed to waive compound interest on loans up to 2 crores under the relief package. The Supreme Court initially asked the government to consider relief for borrowers and affected sectors of industries.
The Centre / RBI on Friday informed the Supreme Court that no more financial relief is possible beyond this.
The Centre said it’s not possible to add more to the already announced financial relief packages. The central bank, Reserve Bank of India (RBI) confirmed that it will no more be revising the Rs 2-crore limit on loans, the benefit already announced in the previous proposal.
RBI: No More Loan Moratorium Extension, Get Ready To Pay EMIs
The already agreed waiver of compound interest on loans up to 2 crores under the relief package will stay in effect without any more extension. Centre said that it cannot waive interest on the interest for the six-month moratorium granted on the loan repayment for the real estate sector.
Reserve Bank of India (RBI) confirmed that a cumulative relief package of Rs 22 lakh crore has already been announced.
The extension was allowed due to the economic situation created by pandemic and job losses faced by a class of borrowers. The Finance Ministry will bear the burden of compounding of interest.
Supreme Court asked the government to consider relief to other classes of borrowers and different sectors of industries. The October 2 affidavit agreed to waive interest on interest for the instalments to be paid for loans up to Rs 2 crore for MSMEs and individual borrowers.
RBI Loan Moratorium Extension: Extra Interest Has To Be Paid?
The six-month RBI loan moratorium period is from March 1 till August 31. The Kamath Committee report considered restructuring of loans given the current situation taken by big borrowers. So, be ready to pay interest from now on, as the loan moratorium will no more be extended.
RBI announced a financial package of Rs 21.7 lakh crore under Garib Kalyan and Aatma Nirbhar packages which covers multiple affected sectors.
The process will get a final appraisal done by the Expenditure Finance Committee, and then will be placed for approval of the Union Cabinet. Once the Union cabinet approves, a will be issued with subsequent authorisation of Parliament to incur expenditure.