In order to deal with economic fallout and disruption caused due to COVID-19 which has been declared as a Pandemic by WHO and has led to the lockdown of the entire country, Reserve Bank of India (RBI) has come up with significant measures and relief to address the financial stress caused to the business class as well as salaried persons in these difficult times. These measures, inter alia, aimed to reduce the repayment pressures on the existing debt as well as to the address the issue of increased working capital requirement in the businesses.
To achieve the above objectives, RBI has issued detailed Statement on Developmental and Regulatory Policies on March 27, 2020 and through release of subsequent detailed instructions through COVID-19 Regulatory Package issued on even date, it allowed rescheduling the payments of Term loans and working capital facilities through permission to the lending institutions to offer Moratorium period. Details of the above scheme are highlighted through below FAQs