RBI proposes, SBI disposes; banks resist moratorium to NBFCs
Reserve Bank of India (RBI) in its COVID-19 package has said that all commercial banks, cooperative banks and NBFCs including MFIs and housing finance companies are permitted to provide a moratorium on all kinds of term loans


- Apr 8, 2020,
- Updated Apr 8, 2020 1:46 PM IST
Non-banking finance companies ( NBFCs), with close to 10,000 entities and assets size of Rs 32 lakh crore, have been left to fend for themselves in these difficult times as the banking sector has refused to provide them any moratorium on term loans.
All banks are currently offering a three-month moratorium on loan instalments to corporate as well as retail borrowers. But they aren't offering the same to NBFCs.
The reason for this is that NBFCs are 'lending institutions' which offer the moratorium to customers, so they can't avail the moratorium themselves. But, interestingly, the total outstanding bank loan to NBFC sector is around Rs 7 lakh crore. So, unfortunately, they too have a lot to pay up.
Non-banking finance companies ( NBFCs), with close to 10,000 entities and assets size of Rs 32 lakh crore, have been left to fend for themselves in these difficult times as the banking sector has refused to provide them any moratorium on term loans.
All banks are currently offering a three-month moratorium on loan instalments to corporate as well as retail borrowers. But they aren't offering the same to NBFCs.
The reason for this is that NBFCs are 'lending institutions' which offer the moratorium to customers, so they can't avail the moratorium themselves. But, interestingly, the total outstanding bank loan to NBFC sector is around Rs 7 lakh crore. So, unfortunately, they too have a lot to pay up.