Banks to request Finance Ministry for further extension of moratorium: Source

Finance Minister

Finance MinisterFinance Minister Nirmala Sitiharaman and heads of Public Sector Banks are planning to unblock the hurdles that are holding back delivery of credit to industries despite various measures from the centre and the banking regulator, and review the entire progress pertaining to various schemes and brings changes in them if needed, reported ET quoting bank officials.

ET in its report reveals that bankers are most likely to request the Finance Minister for further extension of the payment moratorium since businesses are still struggling to maintain the momentum and the majority of them yet to start operations.

“A host of issues are on the agenda including the working capital products launched by banks and the scheme provided by the RBI, but most importantly we will take up the need for extension of moratorium with the minister,” reported ET quoting a banker who did not want to be named.

From the time the lockdown has been announced, the centre and the banking regulator Reserve Bank of India are announcing various schemes, such as payment moratorium and liquidity measures in a bid to offer assistance to the businesses with their cash flows. As per the report, the meeting would be held through a video conference.

It further reported that lenders are also planning to discuss the release of the Rs 3 lakh crore MSME package and the extension of partial credit guarantee scheme to NBFCs with the Union Finance Minister.
This meeting was earlier scheduled to happen on May 11.

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