Can’t extend loan moratorium as it may affect credit discipline: RBI to SC
The Reserve Lender of India, in an affidavit, submitted prior to Supreme Court docket in the personal loan moratorium case, said that it would not be possible to give extra time as a reduction for sectors strike by the coronavirus pandemic.
The Centre made it crystal clear that further more reduction is not possible over and above waiver of desire-on-desire for particular groups of personal loan account getting borrowing up to Rs 2 crore.
In the affidavit, RBI advised Supreme Court docket, “Resolution Framework issued by the Reserve Lender on August 6, 2020 is aimed at facilitating revival of authentic sector actions and mitigating the affect on the ultimate borrowers, which are under financial stress prompted by economic fallout on account of Covid-19 pandemic.”
“In terms of the Resolution Framework, only these borrower accounts shall be eligible for resolution which ended up classified as conventional, but not in default for