The Reserve Bank of India (RBI) said on Thursday that it would provide a loan resolution window to enable lenders to implement a resolution plan in relation to qualified corporate exposures as well as personal loans, without keeping ownership unchanged and Non-debt performance without classifying them.
RBI Governor Shaktikanta Das also said that there is no need for a moratorium to repay loans to better prepare businesses to face the situation at present. It may be noted that the RBI announced a six-month deferment in the initial days of the national lockout last year to help borrowers to get influenced in economic activities.
The entire state of Maharashtra is in lockdown for non-essential services and local and nocturnal lockdowns are being seen in many areas of the country including the national capital to prevent a surge in cases. “In today’s situation, postponement is not needed,” Das said during a conversation with reporters after the announcement of the first monetary policy review of the new fiscal year. He said that businesses, especially those from the private sector, are better prepared to deal with the situation and continue their activities.
Termed the debt moratorium as a “traditional” instrument, similar to a standard operating tool, Das reminded that the RBI took a set of innovative measures to help the economy in an epidemic compared to the previous year is.