Chennai: Reserve Bank of India today announed that the loan moratorium, which was announced in March due to Covid-19 lockdown, will be extended till 31 August. This makes it a six month moratorium.
Addressing a press conference, RBI Governor Shaktikanta Das said lending institutions are being permitted to restore the margins for working capital to the origin level by 31 March, 2021.
Monetary policy transmission has improved, he said and added that an improvement in passing on a lower rate to borrowers has been noticed across various business segments.
In order to provide greater flexibility of SIDBI, another 90 days extension for the 90-day term loan facilities will be offered, said Shaktikanta Das. This will provide additional liquidity support to the MSME sector, RBI chief said.
Das also said that forex reserves stand at $ 487 billion, equivalent of 1 year of imports.