Covid-19 crisis: Each bank to decide on granting moratorium to NBFCs

Banks will individually take a call on granting a moratorium to shadow lenders after a meeting of the Indian Banks’ Association (IBA) failed to come up with a unanimous view.
 

The issue has been in focus after the Reserve Bankof India (RBI) permitted banks to give moratorium on term loans to customers facing cash-flow problems during the nationwide lockdown imposed to curb the spread of the coronavirus pandemic.

However, there was no clarity on whether the finance companies that borrow from banks would get the option to delay payments to their lender banks.

The management committee of industry lobby group IBA met