Poket News

Moratorium period exceeding 6 months may result in vitiating overall credit discipline

 

  • The Reserve Bank of India submitted to the Supreme Court that a loan moratorium exceeding 6 months might result in vitiating the overall credit discipline, which will have a debilitating impact on the process of credit creation in the economy.
  • The RBI has said that a long moratorium period could impact credit behaviour of borrowers and increase the risks of delinquencies post resumption of scheduled payments.
  • The apex court is scheduled to hear the matter on October 13.