News agency PTI quoted sources as saying that with the repayment of bank loans ending on Monday, the Reserve Bank of India (RBI) is unlikely to extend the scheme. The debt moratorium was announced from March 1, 2020, to help businesses and individuals tide in their pocket-stretching positions amid the outbreak of the COVID-19 epidemic. The six-month period of the moratorium is now going to expire.
However, the issue has been met with the court in consultation with the individual petitioners, asked for an extension of the scheme by the end of the scheme. On the other hand, several bankers, including HDFC Limited chairman Deepak Parekh and managing director of Kotak Mahindra Bank Uday Kotak, have asked RBI governor Shaktikanta Das not to extend the grace as many people are taking undue advantage of the facility.
Quoting PTI, sources said that as economic activities intensify, the continuity of temporary measures will not be enough to address the cash flow problems of borrowers. Therefore, the central bank wants to re-unbalance the debt burden of borrowers and therefore has announced the debt restructuring plan.
Recently, the RBI governor said that the loan moratorium was a temporary solution in the context of the moratorium, with the resolution framework expected to provide sustainable relief to borrowers facing COVID-19-related stress.
Meanwhile, the Supreme Court (SC) said on Friday that it will hear it is seeking an extension of the latest plea plan. Lawyer Vishal Tiwari, who filed a petition to a 3-judge bench headed by Justice Ashok Bhushan, said that there was still an adverse impact of the epidemic on the financial situation and, therefore, the adjournment plan needed to be extended by the end of the year. Now, a petition filed by Gajendra Sharma, a resident of Agra, will be heard, which is scheduled for hearing on September one.