Reserve Bank Governor Shaktikanta Das said that there is no need to give moratorium in loan repayment at this time amid lockdown at local level in many places across the country. He said that traders have prepared better to deal with the situation. It is notable that between March and August last year, the Reserve Bank granted the borrowers EMI payments at a time when economic activity was severely affected by the Corona epidemic and the lockdown implemented to prevent it. Lockdown has been implemented for non-essential services across Maharashtra. Apart from this, night curfew has been announced in various parts of the country including the national capital.
After the first monetary policy review of the new fiscal year, Das told reporters, “In today’s situation there is no need for moratorium.”Das said that the business has made better preparations to deal with the situation and continue its activities in today’s time. The RBI governor said that he could not give any indication yet about the decisions to be taken in the future of the central bank.
The Governor of the Reserve Bank termed the Loan Moratorium a traditional instrument. Das said that the central bank took a number of new measures to revive the economy at the time of the epidemic. He pointed out that the purchase of structured bonds under the GSAP program announced on Wednesday is one of such steps.
He said, “We monitor asset quality data regularly. Under no circumstances should a central bank react in a random manner …. We will assess the situation, its depth, severity and effects before making any decision. ”
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