The government has extended the nationwide lockdown to 31 May. After this, the RBI can extend the moratorium for another three months on payment of EMI of the loan. It has been said in a research report by SBI. The National Disaster Management Authority (NDMA) announced the lockdown 4.0 on Sunday. This phase of the lockdown will continue till 31 May. It is noteworthy that the lockdown is in force in the country from March 25 to prevent the spread of coronavirus infection.
SBI's research report Ecowrap says, "The lockdown has been extended till May 31. We are expecting the moratorium to be extended for another three months by the RBI. "This report states that after extending the moratorium for three more months, companies will not have to pay the debt until August 31, 2020. This report also states that RBI should allow banks to undertake overall restructuring of loans already in operation. Also, the 90-day rule should be renewed.
This report states that the RBI circular of June 7 is very stringent and banks do not have much scope to do anything. It is noteworthy that the central bank has been taking a number of steps since March in view of the effects of covid-19 on the economy. In this direction, the bank had drastically cut key policy rates.
