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<ul><li>The Reserve Bank of India (RBI) is likely to extend the moratorium on repayment of loans for three more months, according to an SBI research report.</li><li>On Sunday, the National Disaster Management Authority (NDMA), the nodal department, announced lockdown 4.0 till May 31 to check the spread of the novel coronavirus </li><li>In March, RBI had allowed a three-month moratorium on payment of all term loans due between March 1, 2020 and May 31, 2020. </li></ul>With the government extending the nationwide lockdown up to May 31, the Reserve Bank of India (RBI) is likely to extend the moratorium on repayment of loans for three more months, according to an SBI research report. On Sunday, the National Disaster Management Authority (NDMA), the nodal department, announced lockdown 4.0 till May 31 to check the spread of the novel coronavirus. The lockdown was first announced by Prime Minister Narendra Modi on March 24 for 21 days in a bid to combat the COVID-19 pandemic. It was first extended till May 3 and again till May 17. In March, RBI had allowed a three-month moratorium on payment of all term loans due between March 1, 2020 and May 31, 2020. "With the lockdown now extended up to May 31, we expect RBI to extend the moratorium by three months more," SBI's research report- Ecowrap said. The report said the moratorium for three more months will imply that companies need not pay till August 31, 2020, and this means that there is almost minimal possibility of companies being able to service their interest liabilities then in September. Failing to repay the interest liabilities will mean the account might be classified as non-performing loans as per the RBI norms. "Thus, the RBI needs to give operational flexibility to banks for a comprehensive restructuring of the existing loans and also a reclassification of 90 day norm," the report said. The RBI's June 7 circular is stringent and gives little flexibility to banks. "The revised restructuring norms should give banks to restructure like say converting interest liabilities up to March 2021 into term loans, repayable in 3-5 years for working capital and at the end of the tenor in case of term loans," the report said. RBI also needs to also clarify whether working capital expansions classify as COVID-19 debt, it said.

RBI may extend moratorium on repayment of loans for three more months: Report

<ul><li>The Reserve Bank of India’s (RBI) Monetary Policy Meeting (MPC) is currently underway and it has some tough decisions to make.</li><li>It needs to decide between meeting its inflation-targeting mandate and making sure there’s still liquidity in the market. </li><li>The RBI also needs to figure out where another moratorium or a one-time restructuring of loans across all sectors will be better for businesses.</li></ul>The Reserve Bank of India (RBI) is set to announce its policy rate decision tomorrow, and this time around, the situation is more uncertain than usual. From meeting its inflation mandate to keeping money circulating in the economy to dealing with loans — RBI’s policy decision could set the tone for how the apex bank expects the next few months to go. The moratorium conundrum Many banks and industry experts are of the opinion that another moratorium on loan repayments is not required going forward. The RBI first announced a three-month moratorium from March to May then extended the limit to August 31 leading to a lot of uncertainty when it comes to a bank’s balance sheets. Private and public sector banks alike have been shoring up provisions to deal specifically with COVID related accounts, over and above the RBI’s mandate. <div type="image" title="Provisions in Q1" msid="77365771" hostid="261" caption="&amp;lt;p&amp;gt;Provisions across major Indian banks in Q1&amp;lt;/p&amp;gt;"></div> SBI chairman Rajnish Kumar told the <a href="https://economictimes.indiatimes.com/news/economy/policy/government-and-corporates-need-to-invest-more-for-recovery-sbi-chairman-rajnish-kumar/articleshow/77358404.cms">Economic Times</a> that the moratorium has achieved its limited purpose and can now be done away with. “What the RBI can do is if the bank is satisfied with the intent of the borrower and normalisation in cash flows, it can give some relief,” he said. The call for one-time restructuring Rather than delay payments further, Indian industry leaders are suggesting that a one-time restructuring of all loans should be put on the table. Certain segments were already struggling before the coronavirus pandemic hit and others are wondering how to crack the ‘new normal’. <div type="Article" hostid="261" msid="77328145" title="One-time loan restructuring dilemma - RBI won’t commit, and India Inc won’t stop asking for it" mstype="2" mssubtype="0"></div> The RBI’s issue with restructuring loans has always been that it amounts to ‘deceptive banks’ — in the words of the former RBI governor Raghuram Rajan. Businesses, on the other hand, don’t want to be declared NPA in order to be restructured since that blocks incremental funding. For any of this to happen, banks need to be incentivized to pump more money into loans on the verge of collapse. RBI’s inflation-targeting mandate Former RBI Deputy Governor Viral Acharya <a href="https://www.moneycontrol.com/news/trends/current-affairs-trends/focus-on-inflation-over-growth-at-next-policy-review-meet-viral-acharya-to-rbi-5631091.html">believes</a> that the apex bank should ‘respect’ its core mandate and get inflation in India under control. But, it’s not a simple choice because of the relationship inflation shares with the repo rate. The RBI has slashed the repo rate twice in the last 4 months — once during the March MPC by 75 basis points (bps) and again in an off-cycle meeting in May by another 40 bps. 100 bps make up one percent and the repo rate is one of the instruments that the RBI has on hand to control inflation and spur growth. The rate currently stands at 4%. The repo rate and inflation share an inverse relationship. While dipping the repo rate further could make inflation worse, increasing it would make it more expensive for banks to borrow. The RBI is required to keep inflation in India between 2% to 6% as per its inflation targeting mechanism — or core mandate as Acharya put it. In the last six months, the RBI has missed its range exceeding 6% inflation each quarter. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Month </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rate of Inflation </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quarterly average </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jan </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.59% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Feb </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.58% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.84% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.67% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.22% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">May </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.27% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">June </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.09% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.51% </td></tr></tbody></table> If the RBI fails to keep inflation within tolerance levels this quarter as well, it will technically constitute a failure of the monetary policy. Following which, RBI will be required to send a report to the central government explaining why the situation occurred and the remedial measures to fix it. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/axis-bank-finalises-10000-crore-share-sale-to-raise-funds-at-a-floor-price-of-442-19/articleshow/77354177.cms">Axis Bank finalises ₹10,000 crore share sale to raise funds at a floor price of ₹442.19</a> <a href="https://www.businessinsider.in/finance/banks/news/one-time-loan-restructuring-dilemma-rbi-wont-commit-and-india-inc-wont-stop-asking-for-it/articleshow/77328145.cms">One-time loan restructuring dilemma - RBI won’t commit, and India Inc won’t stop asking for it</a> <a href="https://www.businessinsider.in/finance/news/depressions-and-recessions-differ-in-their-severity-duration-and-overall-impact-heres-what-you-need-to-know-/articleshow/77289455.cms">Depressions and recessions differ in their severity, duration, and overall impact. Here's what you need to know.</a>

Three things the RBI will have to mull over as it gets ready to announce its monetary policy decision

New Delhi, Mar 5 () The Reserve Bank on Thursday imposed a moratorium on troubled lender Yes Bank and capped withdrawals at Rs 50,000, sources said.The private sector lender has been grappling with mounting bad loans.Earlier in the day, sources said SBI along with some other financial institutions would bail out capital-starved Yes Bank, with the government giving the go-ahead. BEN AA RAM

RBI imposes moratorium on Yes Bank

<ul><li>The Reserve Bank of India (RBI) is looking at the one-time restructuring of all loans, which includes personal loans as well. </li><li>Provided you didn’t default on your loans as of 1 March 2020, you can apply to change the payment plan on your loan. </li><li>RBI has set a deadline of 1 December 2020 for all restructuring requests to be put into play and implemented within 90 days of being invoked. </li></ul>Car loans, home loans, or any kind of personal loan that you couldn’t make the payments on are now eligible for restructuring. The Reserve Bank of India (RBI) announced that it will open up a window for a one-time <keyword id="444301" type="PERSON" weightage="20" keywordseo="restructuring-of-loans">restructuring of loans</keyword> — all loans — that were impacted by COVID 19. <div type="image" title="Overall exoposure" msid="77392046" hostid="261" caption="&amp;lt;p&amp;gt;Loans under moratorium with banks across India as a percentage of total outstanding loans &amp;lt;/p&amp;gt;"></div> This means that you’re struggling to pay off your personal loans, you can ask the bank to modify the terms of repayment, get additional credit to rebuild or even extend the moratorium period. The minimum credit requirement is that you should not have defaulted on your loan payments as of 1 March 2020 or within 30 days of that day. The outstanding amount of debt at that point of time will be considered for restructuring. You have till 31 December to push for a new payment plan As per the RBI’s circular, resolution under the new mechanism has to be invoked by 31 December 2020. Once invoked, it must be implemented within 90 days. However, RBI suggests that banks and other lending institutions should try and kick off their plans earlier than the due dates. The resolution could include the following features: <ul><li>Rescheduling of payments </li><li>Conversion of interest accrued into another credit facility </li><li>Granting of moratorium </li><li>Modification of overall tenor of the loan </li></ul>The terms and conditions of how this will be determined depending on your projected income streams over the next two years. Provided the restructuring plan is put in place within the stipulated timeline, then your loan will not be classified as a non-performing asset (NPA). However, if that is not the case then rating of the loan will be done as per the borrower’s actual performance. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-brings-in-kv-kamath-to-set-the-boundaries-for-a-one-time-restructuring-of-these-loans/articleshow/77388568.cms">RBI brings in KV Kamath to set the boundaries for a one-time restructuring of loans</a> <a href="https://www.businessinsider.in/finance/news/rbi-governor-shaktikanta-das-leaves-repo-rate-unchanged-to-check-inflation/articleshow/77387591.cms">‘Watchful’ RBI leaves repo rate unchanged to keep inflation in check</a> <a href="https://www.businessinsider.in/finance/news/rbi-has-opened-a-pipeline-of-funds-for-startups-home-buyers-and-green-power-producers-too/articleshow/77388903.cms">RBI has opened a pipeline of funds for startups, home buyers and green power producers too</a>

If you have a bank loan that you are unable to pay, restructuring is on its way

<ul><li>The Central government on Tuesday brought <keyword id="135860" type="COMPANY" weightage="20" keywordseo="Lakshmi-Vilas-Bank">Lakshmi Vilas Bank</keyword> under <keyword id="117489" type="PERSON" weightage="20" keywordseo="moratorium">moratorium</keyword> for 30 days, restricting deposit/withdrawal not exceeding ₹25,000.</li><li>The moratorium came into effect from 6 p.m. on Tuesday and will be in place up to December 16, 2020. </li></ul>Following an application submitted by the <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>), the Central government on Tuesday brought Lakshmi Vilas Bank under moratorium for 30 days, restricting deposit/withdrawal not exceeding Rs 25,000. The Centre issued the moratorium notification under Section 45 (2) of the Banking Regulation Act, 1949. The moratorium came into effect from 6 p.m. on Tuesday and will be in place up to December 16, 2020. The notification also stays the commencement or continuance of all actions and proceedings against Lakshmi Vilas Bank. During the period of moratorium, subject to the condition that such stay shall not in any manner prejudice the exercise by the Central government of its powers under Clause (b) of Sub-section (4) of Section 35 of the said Act or the exercise by the Reserve Bank of India of its powers under Section 38 of the said Act. As per the notification, Lakshmi Vilas shall not without the permission in writing of RBI: * Make payment to a depositor an aggregate sum exceeding Rs 25,000 lying to his credit in any kind of deposit including multiple deposit. * Wherever such depositor is having dues payable to the bank in any manner, either as a borrower or surety, the amount payable to such depositor shall be made after adjusting the relevant borrowal accounts. * Payment to bank creditor cannot exceed Rs 25,000, subject to following exceptions: (i) making of payment of amounts towards any drafts or pay orders issued by the Lakshmi Vilas Bank and remaining unpaid on the date on which the order of moratorium comes into force; (ii) paying the proceeds of the bills received for collection on or before the 17th day of November, 2020; (iii) making payment towards existing liabilities for call money or inter-bank borrowing (iv) trades effected prior to the date of moratorium for which settlement is yet to take place. * Grant any loans or advances or make investments in any credit instruments. According to the notification, the RBI may by a general or special order permit Lakshmi Vilas Bank to allow pay to its depositors an amount in excess of Rs 25,000 to meet unforeseen expenses towards (a) medical treatment of the depositor or any person actually dependent on him (b) towards the cost of higher education of the depositor or any person actually dependent on him for education in India or outside India; (c) to pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him (d) in connection with any other unavoidable emergency if there is sufficient credit in his account. However, the sum such paid shall not exceed Rs 5 lakh or the actual balance lying to the credit of the account of such depositor, whichever is less. The Central government also directed Lakshmi Vilas Bank to pay for repaying loans or advances granted against government securities or other securities to it by the RBI or the State Bank of India or by any other bank and remaining unpaid on the date on which this order comes into force. Lakshmi Vilas Bank is permitted to operate its accounts with the RBI or with any other bank for the purpose of making the payments aforesaid. The bank may release or deliver goods or securities which have been pledged, hypothecated or mortgaged or otherwise charged to it against any loan, cash credit or overdraft: (i) In any case in which full payment towards all the amounts due from the borrower or borrowers, as the case may be, has been received by it, unconditionally. (ii) In any other case, to such an extent as may be necessary or possible, without reducing the proportions of the margins on the said goods or securities below the stipulated proportions or the proportions which were maintained before this Order came into force, whichever may be higher. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/urban-ladder-was-the-fourth-startup-from-vani-kola-kalaari-capital-portfolio-to-be-sold-to-reliance/articleshow/79264455.cms">Urban Ladder was the fourth startup from Kalaari Capital’s portfolio to be sold to Reliance – the investment firm’s MD is of the belief ‘selling does not mean sellout’</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/urban-ladder-was-the-fourth-startup-from-vani-kola-kalaari-capital-portfolio-to-be-sold-to-reliance/articleshow/79264455.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/the-race-for-covid-19-vaccine-heres-how-moderna-pfizer-and-sputnik-v-vaccines-stack-up-against-each-other/articleshow/79263801.cms">The race for COVID-19 vaccine: Here’s how Moderna, Pfizer and Sputnik V vaccines stack up against each other</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/the-race-for-covid-19-vaccine-heres-how-moderna-pfizer-and-sputnik-v-vaccines-stack-up-against-each-other/articleshow/79263801.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/billionaire-tesla-ceo-elon-musk-set-to-become-the-worlds-third-richest-person/articleshow/79261388.cms">Elon Musk gets richer by $15 billion on Tesla’s S&amp;P inclusion — set to become the world’s third-richest person, leapfrogging Mark Zuckerberg</a>

Lakshmi Vilas Bank under moratorium— RBI caps maximum deposit or withdrawal at ₹25,000

<ul><li><keyword id="6368751" type="UNKNOWN" weightage="20" keywordseo="banks">Banks</keyword> are evaluating their loan portfolio with regard to customers who availed moratorium of interest repayment during the first instalment period of March 1 to May 31.</li><li>Fresh extension on moratorium will be offered only to certain clients with good track record and healthy business operations, source told IANS.</li><li>As part of COVID-19 relief package, the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> on Friday extended the moratorium on term loans and interest on working capital loans by three months till August 31. </li></ul>Banks may not extend <keyword id="9275958" type="UNKNOWN" weightage="20" keywordseo="Second-moratorium">second moratorium</keyword> to all their customers amid gradual resumption in business activity and rising asset quality risk emerging from longer duration loan forbearance. Sources said that banks are evaluating their loan portfolio with regard to customers who availed moratorium of interest repayment during the first instalment period of March 1 to May 31. Fresh extension on moratorium will be offered only to certain clients with good track record and healthy business operations. "Unlike the first round, banks will now be extending the moratorium selectively (1m-3m) basis to new/old customers, while good customers too will be reluctant, given the higher interest cost and some pick-up in business activity," said Emkay Global in a report prepared after talking to several bankers on the fresh announcements by the Reserve Bank of India (RBI). As part of COVID-19 relief package, the RBI on Friday extended the moratorium on term loans and interest on working capital loans by three months till August 31. Also, as a relief for working capital borrowers, it allowed conversion of accumulated interest on these loans to Funded-Interest Term Loan (as typically happens under restructuring) instead of one-shot payment at the end of the moratorium, but still payable before March 31, 2021. Bankers are indicating that instead of the 3 month moratorium, forbearance on asset classification or selective restructuring (mainly for SME) would have been a better solution, with business activities resuming gradually. Longer moratoriums are acceptable for long-tenure loans like mortgage, but not for short-tenure loans, and also disrupts credit discipline even for relatively good customers in the long run, the brokerage said in its report on the basis of comments from bankers. It is now expected that that salaried class, which was relatively reluctant in the first round, may opt for a moratorium in the second round due to rising job losses/pay cuts. Moratorium behaviour from corporates was mixed in the first round, with even good rated corporates availing moratorium, but may not take the extension. Collection from micro finance segment borrowers still remains slow due to restriction in conducting centre meetings and thus, banks may selectively extend a short moratorium on need basis in specific areas, the brokerage said.

Banks could extend RBI's second moratorium 'selectively'

<ul><li>Reserve Bank of India (RBI) governor has extended the moratorium for repaying terms loans by another three months. </li><li>This includes retail loans like those taken out for cars, home and education, along with corporate loans. </li><li>This means that the total amount of interest across these six months will only be due after the expiry of the deferment period on August 31.</li></ul>RBI governor <keyword id="6359111" type="UNKNOWN" weightage="20" keywordseo="Shaktikanta-Das">Shaktikanta Das</keyword> announced some more relief for borrowers by extending the <keyword id="9266253" type="UNKNOWN" weightage="20" keywordseo="moratorium-on-loan-repayments">moratorium on loan repayments</keyword> by another three months. Now they will have will August 31 to meet their repayment requirements. <div type="Article" hostid="261" msid="75883601" title="Reserve Bank of India cuts interest rates to the lowest in over 2 decades⁠ as the central bank expects the GDP to contract this financial year" mstype="2" mssubtype="0"></div> “In view of the extension of the lockdown and continuing disruptions on account of COVID-19, the earlier measures are being further extended by another three months from 1 June till 31 August,” said Das. This includes paying my loans across the board, including retail loans on cars, homes and education. “This will allow borrowers to manage their finance and manage their cash flow in a gradual manner,” he added. This brings the total moratorium periods to six months, from 1 March to 31 August. This means that the total about of interest across these six months will only be due after the expiry of the deferment period. <div type="Article" hostid="261" msid="74841767" title="No EMI payments for home, car, and corporate and other loans for 3 months says RBI" mstype="2" mssubtype="0"></div> According to Das, this will help further ease the stress caused by coronavirus pandemic and the ongoing lockdown by providing relief on debt servicing and improving access to working capital. Under normal cicircumstances, the deferment of loan repayments has an impact on the borrower's credit history and risk classification. This can make it difficult to get other loans later on. However, with a moratorium in place, the borrower's credit rating will not be adversely impacted in any way. "The rate cuts combined with the further extension of loan moratoriums by 3 months up to August 31, 2020 augurs well for the real estate sector in the times to come," said Anuj Puri, Chairman of Anarock Property Consultants. "Home loan interest rates have already gone down substantially over the last year, and are presently at an all-time low averaging between 7.15% to 7.8%," he added. Most banks are not making the deferment automatic instead giving borrowers to choice to opt-in. While some have made the option available online, others will have to call up their banks in order to inform them that they wish to delay their repayment, especially in cases where the loan repayment is cut automatically from their associated account. Finance Minister Nirmala Sitharaman, in her slew of announcements last week, had provided indirect relief for the common man by deferring the filing of income tax returns till 30 November 2020. <div type="Article" hostid="261" msid="75717906" title="Deadlines for tax returns deferred⁠— and other tax reliefs announced by Nirmala Sitharaman" mstype="2" mssubtype="0"></div> SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/rbi-news-reserve-bank-of-india-governor-shaktikanta-das-cuts-interest-rates/articleshow/75883601.cms">Reserve Bank of India cuts interest rates to the lowest in over 2 decades⁠ as the central bank expects the GDP to contract this financial year</a> <a href="https://www.businessinsider.in/defense/news/india-china-point-fingers-for-border-issues-along-lac/articleshow/75883231.cms">‘Not accurate’ and ‘nonsense’ — India and China in a war of words in New Delhi while flexing muscles across the Ladakh border</a>

You Searched For "RBI moratorium" and got 7 results

RBI may extend moratorium on repayment of loans for three more months: Report

PTI

Three things the RBI will have to mull over as it gets ready to announce its monetary policy decision

Prabhjote Gill

RBI imposes moratorium on Yes Bank

PTI

If you have a bank loan that you are unable to pay, restructuring is on its way

Prabhjote Gill

Lakshmi Vilas Bank under moratorium— RBI caps maximum deposit or withdrawal at ₹25,000

IANS

Banks could extend RBI's second moratorium 'selectively'

IANS

No EMI payments for six months as RBI extends moratorium on loans repayments till August 31

Prabhjote Gill

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