There is no way that things will limp back till first week of June, said a private banker, adding that the moratorium should be extended for at least three more months from June.
A top public sector bank (PSB) executive said the issue had been under consideration and was likely to come up for discussion at a meeting of a key panel of the Indian Banks’ Association (IBA) later this week. And would be taken up with the RBI later.
are included under essential services, NBFCs are not. Therefore, they are not able to service the MSMEs (micro, small and medium enterprises) during lockdowns. NBFCs should be included in the definition of essential services,” CII said.
One PSB official concurred with the demand, saying NBFCs played a crucial role in semi-urban and rural areas, especially in credit disbursal and collection. This is vital for spurring economic activity, which has been hit during the lockdown
and will see more impact with the extension, the official said.
CII also sought an increase in credit limits for all regular banking accounts by 25 per cent. In the current context, one can expect delays in payments and disruptions to affect liquidity across sectors.
CII also asked RBI to relax Aggregate Sanctioned Credit Limit (ASCL) norms for corporates/banks for financial year 2020-21 till further notice or exclusion of up to 25 per cent of incremental borrowing from banking sector in ASCL computation.