With the coronavirus set to impact the country’s economy, the chief of India’s central bank has assured people that the Indian banking system is safe and sound and announced that all banks, lending institutions may allow a three-month moratorium on all loans.
Mitigating debt servicing burden to prevent transmission of financial stress to the real economy, provide relief to borrowers said Reserve Bank of India chief Shaktikanta Das. He clarified said that a three-month moratorium has been decided on payment of installments of loans outstanding on 1 March 2020.
Banks may also reassess working capital cycle and will not be treated as non-performing assets, he said.
He added that lending companies, banks are allowed to defer interest on working capital repayments by three months.
The RBI chief also urged to not withdraw their deposits from banks out of panic triggered by the coronavirus pandemic. “Your funds are safe,” he said. “In recent past COVID-19 related volatility in stock market has impacted share prices of banks as well resulting in some panic withdrawal of deposits from a few private sector banks.” he said.
Mitigating debt servicing burden to prevent transmission of financial stress to the real economy, provide relief to borrowers said Reserve Bank of India chief Shaktikanta Das. He clarified said that a three-month moratorium has been decided on payment of installments of loans outstanding on 1 March 2020.
Banks may also reassess working capital cycle and will not be treated as non-performing assets, he said.
He added that lending companies, banks are allowed to defer interest on working capital repayments by three months.
The RBI chief also urged to not withdraw their deposits from banks out of panic triggered by the coronavirus pandemic. “Your funds are safe,” he said. “In recent past COVID-19 related volatility in stock market has impacted share prices of banks as well resulting in some panic withdrawal of deposits from a few private sector banks.” he said.
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