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Banks To Allow A Moratorium On All The Loans For Three Months:- The Reserve Bank of India in a press conference announced a moratorium on all the loans lent for the next three months after the coronavirus outbreak shattered the economy of the country. RBI Governor Shaktikanta Das met the press and announced the news. All the commercial banks, regional rural banks, small finance banks and local banks, co-operative banks, all -India Financial Institutions, and NBFCs are asked to allow a moratorium of three months on all the EMI installments as on March 1st, 2020. All the due dates, repayment schedule will be shifted for three months.
The individual EMI repayments of the loans would not be deducted from their respective bank accounts till the mentioned time gets completed. The loan EMI payments starts once the announced time comes to an end. The Finance Ministry wrote to the Central Bank suggesting a moratorium after the recent crisis. Various stakeholders mounted pressure to defer the EMI payments as the country is under lockdown for over 21 days. This is a huge relief for several individuals who lent loans (home loans, car loans and others) from various banks. RBI announced EMI Holiday and there would be no interest for the delay.