EMI payment waiver: RBI has permitted all lending institutions to allow a 3-month “moratorium” on payment of installments on term loans.
EMI payment waiver: The Reserve Bank of India (RBI) has permitted all lending institutions, which includes banks, NBFC and co-operative banks, to allow a 3-month “moratorium” on payment of installments on term loans. So, if you were worried about paying EMIs on home loans, auto loans, personal loans, etc. then you can now relax as the RBI Governor Shaktikanta Das has announced three months’ waiver on term loan EMIs deduction.
Terming the RBI’s decision as a timely, move Veena Sivaramakrishnan, Partner, Shardul Amarchand Mangaldas & Co said, “RBI has broadly delivered on the immediate expectation that the industry has posed to the regulator. Deferment of interest for term loans and working capital for the immediate three month period, without any adverse asset classification, will give the Indian corporates the needed breathing space to mitigate the disruption on their day to day operations in the near future.”
Sivaramakrishnan added, “A statement to the public at large that all their deposits, whether it is with the public sector or private sector banks, are safe also provides relief and negates anxiety and panic”.
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