09-August-2020
Banking
 
In talks with RBI to extend moratorium, restructure loans: FM SitharamanIn talks with RBI to extend moratorium, restructure loans: FM Sitharaman
01-Aug-2020

Union Finance Minister Nirmala Sitharaman on Friday said her ministry was working with the Reserve Bank of India (RBI) on extending the loan moratorium period for the hospitality sector, hit hard by the pandemic. She reiterated the ministry was talking to the RBI on restructuring loans for industry. “I understand the requirements of the hospitality sector on extending the moratorium or (loan) restructuring. We are working with the RBI on this,” she told members of the Federation of Indian Chambers of Commerce and Industry (Ficci). The RBI had extended the moratorium period for three months till August 31. There has been demand from the hospitality sector to extend the date. For instance, the Hotel Association of India (HAI) has said the pandemic has destroyed more than 90 per cent of demand in the tourism and hospitality sectors, which employ nearly 45 million people. The hospitality sector wants a staggered approach to the rate of interest. On the other hand, bankers are against extending the moratorium period. For instance, HDFC Chairman Deepak Parekh recently urged RBI Governor Shaktikanta Das not to do it. Parekh said many entities capable of repaying were taking advantage of the scheme and this was hurting the financial sector, especially non-banking.

News Source:- https://www.business-standard.com/article/economy-policy/in-talks-with-rbi-to-extend-moratorium-restructure-loans-fm-sitharaman-120073101048_1.html