Reserve Bank of India extends moratorium on payment of term loan till August 31

In view of the COVID-19 lockdown, the Reserve Bank of India (RBI) has extended the moratorium on payment of term loan till August 31.

On March 27, the Reserve Bank of India had permitted banks to grant a moratorium of three months on payment of installments for term loans. The Supreme Court had issued notice and sought reply from the Centre and RBI on a plea filed by an  Association of Private Real estate developers seeking a clarification on the RBI’s circular of March 27 as regards moratorium on term loans.

Also Read: Solicitor General to obtain instructions from Centre, RBI on the issue of levying interest on loan amount during moratorium period

Announcement regarding the extension of moratorium on payment of term loan till August 31 was made by Reserve Bank of India (RBI) Governor, Shaktikanta Das.