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RBI Loan EMI Moratorium Extended 31 August 2020

RBI Loan EMI Moratorium Extended 31 August, 2020

RBI Loan EMI Moratorium Extended 31 August, 2020 for Counter Covid-19

RBI Announces relief in loans by RBI Loan EMI Moratorium Extended 31 August, 2020

  1. Term loan moratorium extended to 31st August 2020:-

  • Moratorium is now of six months from 1st March 2020 to 31st August 2020.
  • Huge relief as borrowers shall not be required to pay their loan EMIs upto 31st August 2020.
  1. Deferement of interest on working capital:-

  • Interest on working capital in form of cash credit or ODs is deferred by another 3 months i.e. till 31st August 2020.
  1. Margin of working capital – Drawing power:-

  • Lending institutions are permitted to restore the reduced margin for working capital to their original level by 31st march 2021 instead of previously announced 31st August 2020.
  • Would make easier for businesses to manage their cash flows.(RBI Loan EMI Moratorium Extended 31 August, 2020)
  1. Interest on working capital to interest term loan:-

  • Interest accumulated over deferred period of 6 months shall not be required to be paid in one shot but will be converted to funded interest term loan.
  • Repayable during current financial year upto 31st March 2021.(RBI Loan EMI Moratorium Extended 31 August, 2020)
  1. No change in assets classification:-

  • Loan moratorium shall not result in downgrading of assets classification or impact credit history of borrowers.(RBI Loan EMI Moratorium Extended 31 August, 2020)
  1. Reduction in Repo Rate:-

  • Repo rate has been reduced by 40 bps to now 4%.
  • Bank rate now stands at 4.25%
  • Reverse repo rate reduced to 3.35%
  1. Export credit:-

  • Maximum permissible period of (pre and post shipments) export credit extended from 12 month to 15 months
  • For disbursements made upto 31st July 2020.
  1. Support to EXIM Bank:-

  • Line of credit of Rs. 15000 crores extended to EXIM Bank for 90 days with rollover upto max period of 1 year.
  • For US doller swap facility
  1. Payment against Imports:-

  • Extension of time period from 6 months to 12 months for making payments against normal imports.
  • Normal Import i.e. excluding gold diamonds & precious stones jewellery.
  1. Support to SIDBI:-

  • Refinance facility to SIDBI of Rs. 15000 crore at RBI policy repo rate was announced earlier for 90 days.
  • It has been extended for another 90 days.
CS Deepa Sharma

Author is a associate member of the Institute of Company Secretaries of India (ICSI) and apart from that she holds LLB degree and Master in Commerce degree from Rajasthan University. She is having over 5 years of experience as a Practicing Company Secretary. She is well versed with all the matters related to Company Law and ROC matters, RERA , statutory reporting, Compliance Report and Corporate Governance. She is having good exposure in maintaining secretarial records as prescribed under Companies Act, 2013.

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