RBI may not extend moratorium on repayment of loans beyond Aug 31: Report

The Reserve Bank is unlikely to extend the moratorium on repayment of bank loans beyond August 31 as an extension could impact the credit behaviour of borrowers without resolving the issues being faced by them following the outbreak of the Covid-19, sources said.
 

The RBI had announced a moratorium on repayment of debt for six months beginning March 1, 2020 to help businesses and individuals tide over the financial problems on account of disruption in normal business activities.

The six-month moratorium period comes to an end on August 31.

It was only a temporary reprieve to borrowers affected by the