The Reserve Bank of India on Friday asked all lendinginstitutions to allow three-month moratorium on EMI payments in order to infuseliquidity into the system as the economy grapples with Covid-19 challenges.
It has also allowed banks for deferment of interest onworking capital loans for the next three months – until June 2020.
RBI Governor Shaktikanta Das in a press conference saidthese are extraordinary circumstances, and unprecedented measures are requiredto support the sagging economy as all the economic activities have come to ahalt.
The liquidity measures announced by the RBI will makeavailable a total Rs 3,74,000 crore to the country’s financial system.
Das said that the deferment on loan and interest repaymentswill not be classified as defaults and will not impact credit history ofborrowers.