Photo: Business Standard
RBI's Loan Moratorium To MSME Did Not Solve Repayment Problem: Experts
Finance experts claimed that the loan moratorium extended to MSME beneficiaries during a six-month period (March-August 2020) has not improved their repaying capacity. Terming moratorium as "oxygen mask", the Consortium of Indian Associations (CIA) Spokesperson KE Raghunathan said that the move only delayed the suffering of MSMEs. While FKCCI president S Sampathraman raised concerns about demand, Raghunathan urged the Centre to roll out MSME-… read-more
Tags: business, MSMEs, financial support, Loan Moratorium Period
Courtesy: Financial Express
Photo: The New Indian Express
Supreme Court Refuses To Extend Loan Moratorium Period
In response to the pleas filed by trade associations seeking relief, the Supreme Court on March 23 denied extending the loan moratorium period of six months. While proclaiming the verdict, the Apex Court raised concerns about the impact of extension it could have on depositor's cash. Moreover, the Centre stated that interest waiving in all the sector hampers the growth prospects and affects the net-worth of banks.
Tags: Supreme Court, India, Loan Moratorium Period, Moratorium, Central Government
Courtesy: LiveMint
Photo: Live Law
RBI Says No More Relief Packages, Unable To Extend Moratorium Period
Citing the maintainability of "credit discipline", The RBI told the Supreme Court that it cannot extend the 6-month loan moratorium period. The bank also expressed its inability to provide more relief to coronavirus-hit sectors. Addressing the apex court's advise to consider the demands of real estate and power sector, the RBI opined that the sectors suffer from structural problem and they were under stress even before the pandemic.
Tags: RBI, Supreme Court, Loan Moratorium Period, Covid-19
Courtesy: Hindustan Times
Photo: The Hindu
Supreme Court Rejects Centre's Proposal On Waiver Of Compound Interest
The Supreme Court on October 5 rejected the Central government's affidavit regarding waiving of compound interest for a six-month moratorium period. The court noted that the affidavit did not address many issues of petitioners, and it was not followed by "consequential orders or circulars" for enforcement. While directing it… read-more
Tags: Central Governmen, Supreme Court, loans and interests, Loan Moratorium Period
Courtesy: NDTV
Photo: Live Law
Union Government Decides To Waive Compound Interest For Moratorium Period
The Centre has decided to waive compound interest on loans of MSMEs for the moratorium period of six months. Besides, loans upto Rs 2 crore by individual borrowers will also be covered under this decision. In an affidavit in the Supreme Court, the government said it has decided to "continue the tradition of hand-holding the small borrowers." It added SEBI has already provided relaxations in norms of recognizing loans as NPA.
Tags: Supreme Court, Central Governmen, Loan Moratorium Period, loans and interests
Courtesy: ANI News
