As per the MD Dinesh Khara on Tuesday “India’s Largest public sector lender SBI has decided to extend the Reserve Bank of India approved moratorium to the cash-stopped NBFC to help them tide over the crisis.”
The RBI has allowed banks to extend the moratorium to borrowers of time interval loans of all kinds for 3 months – March, April, and May.
Dinesh Khara also said that “SBI has taken a decision to extend the moratorium allowed by RBI to the NBFC sector which is facing severe problem of cash flow.”
The bank would extend the moratorium to the NBFCs on a case-to-case basis after assessing their cash budgets and analyzing the need for extending it, he knowledgeable PTI.
Mr. Dinesh Khara acknowledged that “Just to ensure that there is no gap in the cash flow and help them tide over the contingency, SBI has taken such a decision. And earlier, the SBI extended 10% emergency COVID response contingency loan to all kinds of debtors to an extent of ₹ 200 crore each.”
On Monday 4th May 2020, The RBI governor Shaktikanta Das reviewed liquidity place and way to promote to the MSMEs sector during the meeting with representatives of NBFCs and mutual funds between the lockdown induced by the COVID-19 pandemic.
The RBI said in an acknowledgment that, “Operations of NBFCs have commenced from Monday as the government eased restrictions for the lockdown. Some of the issues discussed during the meeting included availability of liquidity from banks and other financial institutions and post-lockdown strategies for the supply of credit, including working capital, MSMEs, traders, and bottom of pyramid customers in semi-urban, rural and urban areas.”
RBI also said in a statement that, “Implementation of three months moratorium on the compensation of loan installments launched by the RBI, and strengthening grievance redressal mechanisms were also discussed. The governor acknowledged the vital role of NBFCs, including Micro Finance Institutions (MFIs), in delivering ultimate mile credit score rating, and the importance of mutual funds in financial inter mediation, RBI acknowledged throughout the assertion.”