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Not Possible to Extend the Loan Moratorium Period says RBI:- With the entire nation impacted badly due to the coronavirus pandemic, the Reserve Bank of India announced a relief for all those who are occupied with various loans. The Reserve Bank of India announced loan moratorium for all the customers. The Supreme Court asked the country's biggest regulator to give a clarity about the interests levied after the completion of the moratorium. The apex court even asked the Centre to intervene into the issue and make sure that the moratorium doesn't turn a burden for the people. RBI filed a fresh affidavit in the Supreme Court in the loan moratorium case. The Reserve Bank of India said that it is not possible to give more relief for the people and the industries that are impacted due to coronavirus.
The Reserve Bank of India said that it is not possible to extend the moratorium beyond six months. The extension of the moratorium beyond six months may disturb the entire credit discipline. RBI also said that the move can increase the risks of delinquencies of the scheduled payments. The Supreme Court on Monday told the government that its response did not contain the needed details. The Finance Ministry filed an affidavit on October 2nd about deciding the waive compound interest that is charged on the loans up to two crores. RBI said that the real estate and power sectors are stressed badly and the travails of the real sector cannot be solved.