In a move aimed at mitigating the impact of the Covid-19, coronavirus outbreak on businesses and employees in India, Reserve Bank of India on Friday asked all the banks to allow a three months moratorium on all kinds of loans. RBI Governor Shaktikanta Das also revealed that moratorium on term loans of interest payment would not result in asset classification downgrade.
The Reserve Bank of India- RBI also allowed all the banks to reassess the working capital cycle and said that they won't be treated as non-performing assets. Today in a press conference, Reserve Bank of India announced that all banks and NBFCs have been permitted to allow a moratorium of 3 months on repayment of term loans outstanding on 1sr March, 2020. There have been requests from various stakeholders to defer the EMI payments as India is going through a 21 days lockdown due to spread of coronavirus.