RBI Announces 3-Month Moratorium on EMIs
RBI Governor Shaktikanta Das announced measures on Friday to fight the economic impact of lockdown to control the spread of the coronavirus pandemic.
At a press conference on 27th March 2020, RBI Governor Shaktikanta Das announced measures on Friday to fight the economic impact of lockdown to control the spread of the coronavirus pandemic.Because of the lockdown many employees are worried about salaries being cut. People who have taken loans such as car loans, home loans etc are even more worried about the EMIs. Because missing EMI payments would mean strict action by banks.
The Reserve Bank of India has announced that individuals EMI repayments of loans taken would not be deducted from their bank accounts for 3 monthsThis decision applies to all regional, rural banks, co-operative banks, NBFCs including Housing Finance Companies.The RBI also said that this would not also not lead to a downgrading of the borrower's credit rating or affect the risk classification of the loan. Now it is upto all the Banks to decide whether or not they will implement this. No information has been given about the interest either.
Credit cards are not covered under the moratorium.The RBI Governor also said that the Indian banking system is "safe and sound" and depositors should not resort to panic withdrawal of their deposits. He urged those with deposits in private banks to not indulge in panic withdrawal.