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RBI allows lenders to defer repayments on retail, corporate and farm loans by three months

India city Mumbai covid-19 economy crisis
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MUMBAI : Taking heed of clarion calls from lenders and industry alike, the Reserve Bank of India (RBI) on Friday allowed banks to provide a three-month moratorium to all term loans, working capital loans, farm loans and credit card dues.

The measure is expected to bring relief to borrowers across the spectrum who are likely to find it difficult to repay loans during the coronavirus (COVID-19) crisis.

As large sections of the economy come to a standstill amidst the ongoing lockdown, repayments have already started clogging up, with cash collections for non-banks being most-affected.

The benefits will be applicable to borrowers whose installments are due between 1 March to 31 May. According to the central bank, all commercial banks

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