Small And Medium NBFCs Unhappy With RBI Loan Moratorium Package

NBFCs unhappy with RBI loan moratorium package

- KR Srivats

Small and medium NBFCs are anguished that banks may turn choosy and not grant to all of them the benefits of the RBI-approved loan moratorium package to tide over the current difficult situation arising from the coronavirus-induced 21day nationwide lockdown.

This is because the RBI, while announcing the package, has left it to the discretion of banks and financial institutions to decide the cases that could benefit from such a loan moratorium dispensation, they said.

“The RBI has used the word “permitted” for all lending institutions to give it, thereby leaving it to the discretion of each lender. So, this is going to be discretionary on the part of the banks. Moratorium is not going to be mandatory or automatic,” Raman Aggarwal, Co-Chairman, Finance Industry Development Council (FIDC), told BusinessLine.