"Permitting loan restructuring will support the retail industry that has witnessed significant disruption over the past few months. The current retail sales have been around 40 per cent of last year," RAI CEO Kumar Rajagopalan said in a statement.
He added that the restructuring will help retail industry get back on its feet to fight the economic crisis.
He further said, "We hope the new committee that looks into the one-time restructuring, headed by veteran banker K V Kamath, will extend a helpful scheme for loan restructuring to the retail industry."
RAI said the coronavirus pandemic has resulted in a severe financial stress for the Indian retail industry. The closure of business during the lockdown resulted in the loss of revenue, which has rendered some retailers
unable to pay salaries to their staff, it added.
The reluctance of banks, especially private banks, to come to their aid was unfortunate and hurt not only retailers but the banks themselves, it said.
In April, the RBI encouraged banks to lend more by cutting the reverse repo rate by 25 basis points, easing bad-loan rules, and granting a three-month moratorium for payment EMIs due between the March 1 and the May 31 this year.
More than half the retailers surveyed by RAI, however, had not got the moratorium from their banks, the retailers' body said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.