Can’t extend loan moratorium period, may affect credit creation in economy: RBI to Supreme Court
The Reserve Bank of India (RBI) filed a fresh affidavit in the loan moratorium case and told the Supreme Court that it cannot give more time as relief for sectors hit by the coronavirus pandemic. In the affidavit, RBI also stated that it is not possible to extend the moratorium period beyond six months. Explaining its reason, RBI said that exceeding the time limit may result in impacting overall credit discipline as it can widely effect the process of credit creation in the economy and also impact credit behaviour…
