Chennai: Consortium of Indian Associations (CIA), a forum of over 30 associations in India, has said the loan moratorium should be extended till March 2021.
It has written a letter in this regard to Prime Minister Narendra Modi.”CIA urges RBI to urgently announce whether moratorium will be extended or not. Today being 27th and we hardly have few more working days in this month as September EMI commitments hitting the bank from 1 September onwards. Almost 75 per cent of MSE owners and salary class individuals are badly in need of extension of moratorium till March’ 21,” it said.
According to K E Raghunathan, convenor of CIA , the market conditions have not improved since June (after Unlock 1 started) and in reality the job loss has been on increase showing higher economic shrinkages.
“Many entrepreneurs are unable to pay even salary and any other commitments such as PF, ESI, IT, GST, rent, EB bills, TDS etc which are falling due next week, due to unpredictable market conditions, restrictions by local governments and drained cash flow situations. The RBI must consider the factual situation and extend the moratorium till 31 March,” he said.