scorecard
  1. Home
  2. business
  3. news
  4. Retailers seek RBI intervention as banks unwilling to extend debt moratorium to borrowers

Retailers seek RBI intervention as banks unwilling to extend debt moratorium to borrowers

PTI   

Retailers seek RBI intervention as banks unwilling to extend debt moratorium to borrowers
Business1 min read
Mumbai, Mar 31 () The Retailers Association of India on Tuesday complained that banks are unwilling to extend the three-month moratorium to borrowers even after four days of it being announced.

The body sought RBI's intervention to ensure that banks follow up on the announcement made by the central bank last Friday to protect the borrowers against the impact of the COVID-19 pandemic.

The country is under a three-week lockdown starting March 25 and the number of cases infected with the virus is rising steadily. The RBI had announced a moratorium under which borrowers of all the term loans were given a breather from repayments for three months.

"RAI commends the RBI for stepping in at the right time to bring some relief to the mounting stress on the economy and retail business in the wake of COVID-19. However, banks are not willing to take any action on this front," a statement said.

The retailers' body said it has written to RBI governor Shaktikanta Das in this regard seeking his urgent intervention in the matter.

Highlighting the plight of the retailers, it said most of the stores are shut, leaving them with zero revenues but are required to pay overheads such as salaries, electricity, and rentals.

"The cash inflow of the industry has come to a standstill, while the fixed operating costs remain intact," it said. AA SHW MRMR

Advertisement

Advertisement