In the beginning of the lockdown, the RBI had directed the banks to provide relief to the people of the country to extend the EMI of the loan taken by the customers. After this, many banks automatically and some started the facility to extend their loan EMI for three months based on the demand of their customers. Presently this facility has been made for only one month and people have a chance to avail this facility till June. On the other hand, there is news that the borrowers can get this facility from June onwards. It is reported that this relief facility in EMI may extend till August.
However, no official announcement has been made about this at present, but it is reported that many banks have appealed to the Reserve Bank of India RBI to extend the deadline of this facility to extend EMI till August. Currently this facility is 90 days from March to June. However, the interest on the loan during this period has not been relieved.
According to the information, Reserve Bank Governor Shaktikanta Das had a meeting with the heads of private banks on Saturday and suggested several banks to extend the loan morotorium facility beyond 90 days. Banks say that most businesses will be able to start only in or after May. In such a situation, it will not be possible for most traders to pay the installments from June. People should be given more time to recover cash flow.
Although, the Reserve Bank has not made any promises regarding this suggestion at the moment, but there is a possibility that there will be an agreement on this given the extension of the lockdown.