(LiveMint)
The Reserve Bank of India (RBI) may allow lenders to offer companies in stressed sectors such as aviation, automobiles and hospitality the option to pause loan repayments even after the six-month moratorium ends on 31 August, two people directly aware of the discussions said.
The banking regulator has been conducting an impact assessment of sectors and borrower segments by collating data on repayments and cash flows of borrowers since the lockdown was announced in March to get a better understanding of the challenges faced by borrowers, the people aware of the talks between RBI and the banks said on condition of anonymity.
“While it’s a foregone conclusion that the moratorium will be extended for certain segments beyond August, the fine print is still a work in progress,” said one of the three people. “For starters, RBI is of the view that some sectors will continue to need support from lenders as the current economic pain is expected to linger for them.”