InvestorQ : How much will borrowers benefit due to the RBI moratorium of 3 months offered in the last monetary policy in March?
Mary Joseph made post

How much will borrowers benefit due to the RBI moratorium of 3 months offered in the last monetary policy in March?

Answer
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sara Kunju answered.
5 months ago


The retail portion may be hard to assess as it will depend on the number of such borrowers who opt for the facility. However, in the case off corporates, the RBI moratorium of 3 months offered to all non-financial companies by banks could lead to liquidity infusion of Rs.210,000 crore. Of course, this is not liquidity but a time based saving of liquidity. These were part of the findings of CRISIL based on the universe of 9300 financial instruments rated by them. It may be recollected that in the monetary policy announced in late March, the RBI allowed all bank loans to be postponed for a period of 3 months with respect to the EMIs falling due between March and May 2020. This was an EMI deferral and not a waiver so the liquidity infusion will be temporary and the interest meter will continue. However, it was intended to give relief to the corporates that are under severe liquidity strain due to the lockdown.