On Friday, the Apex Court issued notices to the Central Govt. and the Reserve Bank of India (RBI) on a petition seeking clarification whether all non-banking finance companies are eligible for loan moratorium or not.
The petition, filed by the Confederation of Real Estate Developers' Associations of India (CREDAI), had sought clarification whether all non-banking finance companies are eligible for loan moratorium or whether banks have the discretion to give the benefit.
In March, the Reserve Bank of India issued a circular giving liberty to all banks and financial institutions to allow a moratorium of 3 months on the payment of instalments with respect to all term loans outstanding as on March 1, subject to borrower's request.
The decision was taken in a bid to address the financial impact of the lockdown.
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