Money & Banking

RBI extends moratorium for 3 more months

Our Bureau Mumbai | Updated on May 22, 2020

In a breather for borrowers affected by the COVID-19 pandemic, the Reserve Bank of India (RBI) has extended the moratorium on term loans and deferment of interest on working capital facilities by three more months to August 31, 2020. The three month moratorium and deferment was to come to an end on May 31.

The RBI also said the deferred interest on the working capital facility can be converted into funded interest on term loan, repayable by March 31, 2021.

With companies unable to tap the capital markets, the RBI has increased the single borrower exposure limit for banks to 25 per cent of their capital funds

Published on May 22, 2020

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