India c.bank allows fresh moratorium for small borrowers as COVID-19 cases spike

By Reuters7 days ago

Updates with details, background

MUMBAI, May 5 (Reuters) - India's central bank asked banks on Wednesday to let certain borrowers have more time to repay loans, among other support measures, amid a major second wave of COVID-19 infections in the country that has led to strict lockdowns in several states.

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The moratorium will be available to individuals and small and medium enterprises that did not restructure their loans in 2020 and were classified as standard accounts till March 2021, Reserve Bank of India Governor Shaktikanta Das told reporters.

Small businesses and financial entities at the grassroot level are bearing the biggest brunt of the second wave of infections, Das said, as he announced a slew of other measures to enhance liquidity and boost lending to various needy sectors.

The fresh round of moratoriums will be applicable for borrowers with a total exposure of 250 million rupees ($3.39 million), Das said.

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