NEW DELHI: As most states have increased the period of lockdown, the Indian Bank’s Association (IBA) has requested the Reserve Bank of India (RBI) to increase the loan moratorium period from the existing three months to at least five months.
“Now that many states have extended lockdown period, IBA has requested RBI to consider increasing the loan moratorium period till August 31 at least, considering the impact on financials of businesses.The final call however will have to be taken by the central bank, in consultation with the centre,” a senior IBA member said.
Earlier, State Bank of India chief Rajnish Kumar and chairman IBA had already hinted that the loan moratorium might be increased further. “Banks through IBA will request raising the loan moratorium period from three months to 5-6 months depending on the evolving situation. Based on the situation, the RBI may take a call,” Kumar had said, adding “if there is a question of overleveraging or loss prior to the covid-19 period, they will not allow that to be restructured in the garb of this.”