Finance Ministry writes to RBI on coronavirus relief measures, asks central bank to help borrowers cope with damage from outbreak

Amid the coronavirus pandemic which has infected over 600 people in India, the Union finance ministry has asked the Reserve Bank of India to consider ensuring a string of emergency measures to help borrowers cope with the damage caused by the outbreak.

FP Trending March 26, 2020 15:04:03 IST
Finance Ministry writes to RBI on coronavirus relief measures, asks central bank to help borrowers cope with damage from outbreak

Amid the coronavirus pandemic which has infected over 600 people in India, the Union finance ministry has asked the Reserve Bank of India to consider ensuring a string of emergency measures to help borrowers cope with the damage caused by the outbreak.

Finance Ministry writes to RBI on coronavirus relief measures asks central bank to help borrowers cope with damage from outbreak

Representational image. Reuters.

According to a report in the Economic Times, the department of financial services secretary Debashish Panda wrote to RBI suggesting a moratorium of a few months on the payment of EMIs, interest and loan repayments and a relaxation in the classification of nonperforming assets (NPAs).

The letter stressed on the need for relief measures for businesses and individuals facing losses arising from the coronavirus outbreak, the report added.

Earlier this week, Prime Minister Narendra Modi announced a 21-day lockdown period from 25 March to help slow the spread of the coronavirus pandemic.

The period will only see essential services being allowed to function, while businesses and individuals may not be able to pay loans due to the lockdown.

Finance minister Nirmala Sitharaman had announced that the threshold for insolvency is being raised to Rs 1 crore from Rs 1 lakh.

On Thursday, the finance minister announced a Rs 1,70,000-crore scheme to provide food security to the economically weaker sections of the society.

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