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Are banks going to extend moratorium?
The Reserve Bank of India (RBI) announced an extension of the moratorium on term loan EMIs by another three months, i.e. till August 31, 2020 in a press conference dated May 22, 2020. The earlier three-month moratorium on the loan EMIs was ending on May 31, 2020.
Is EMI postponed for 3 months 2021?
RBI announced moratorium of 3 months of EMI’s. This will be an extra burden of compound interest which will be capitalised and will be added to the principal borrowed amount. This is not the relief package for the middle class. This is the relief package for Banks & Finance Companies.
Is moratorium extended until December 2020?
The CFSS and LSS were introduced on April 1, 2020 for a period of six months offering a one-time opportunity to the defaulting companies and LLPs respectively to file the pending documents delayed with MCA without charging any additional fees. The schemes were extended till December 31st, 2020.
Is moratorium extended after August?
The RBI Moratorium and Its Future After 31st August 2020 COVID-19 has had a severe impact on the world economy. It was initially agreed to continue the moratorium from March 2020-May 2020, but at a conference held on May 22, 2020, the moratorium was extended till 31st August 2020.
Is there any extension of moratorium after August?
Future of the moratorium after August 2020 There has been no extension of the moratorium while the economic situation has still not been stabilised.
Will the moratorium be extended beyond August 2020?
In its awaited ruling, the SC denied to interfere with the Centre’s and Reserve Bank of India’s (RBI) decision to not extend the loan moratorium beyond August 31, 2020. The apex court said it is a policy decision.
What happens if the moratorium on lending is extended?
By agreeing to extend the moratorium period, the bank’s cash flow will be impacted as collecting interest on loans is one of the main ways for banks to generate revenue. If the revenue of banks falls drastically, especially for a prolonged period, the banks might encounter some liquidity issues.
What is the covid-19 loan moratorium?
Due to the COVID-19 and subsequent lockdowns across the country, the RBI allowed banks and other lending institutions a three-month loan moratorium on EMIs from March to May 2020. This was later extended by an additional three months up to August 31, 2020.
Will RBI extend the moratorium on borrowers?
However, the banking regulator left it to the discretion of lenders to decide on whether to grant or withhold the moratorium, and for how long, depending on individual borrower profiles. Reportedly, the RBI is again mulling the possibility of extending this moratorium period.
Will there be a further extension of the EMI moratorium?
Several borrowers, including developers, have already availed of the benefit of EMI moratorium for six months, with the possibility of a further extension. For developers, a one-time loan restructuring could have been a better option, but a further extension of the loan moratorium would certainly be welcome.
https://www.youtube.com/watch?v=6v30N6SbhVo