In a big relief to all the borrowers, the Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday announced that all the banks would permit a three-month moratorium to its borrowers on all term loans outstanding from March 1, 2020.
The decision will be applicable to all commercial, regional, rural, co-operative banks and Non-Banking Financial Companies (NBFC), including Housing Finance Companies. The RBI has also assured that the exemption of three months to the customers will not be classified as NPAs (Non Performing Assets) and the banks do not have to worry about it. However, the final decision to permit the moratorium to the customers will depend on the bank itself.
The decision has been made while keeping in view the financial distress of the people due to the current situation of lockdown. All the borrowers will be exempted from paying their EMIs or monthly instalments for a period of three months.