TITLE: THE COVID-19 MORATORIUM: A REPRIEVE AND NOT A WAIVER

Authors

  • Palak Lohia

Keywords:

Banks, NPA, Moratorium, Loans, Public Sector Banks, Private Sector Banks, Covid-19

Abstract

In the first MPC meeting held on 27.03.20, Finance Minister of India, Nirmala Sitharaman and the Governor of RBI, Shaktikanta Das announced a moratorium of three months on all loans and credit card instalments due between 1st March and 31st May initially, which was later extended to 31st August, in order to provide relief to the borrowers in the economy, in the current scenario of losses. Loans being on moratorium are sup- posed to have zero impact on the credit history of the borrower concerned, which means a no default situa- tion.

Now, banking sector, which is the backbone of any economy, will have to carry the burden of this year for many more years to come. In this paper, it has been attempted to study the impact of the decision of putting the loans on moratorium on the banking industry of India, adding to the ever existing issue of high NPAs.

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References

All Data regarding NPA is collected and compiled from: https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications#!4

https://www.researchgate.net/publication/340998382_THE_IMPACT_OF_CORONA_VIRUS_ON_ NPA_AND_GDP_OF_INDIAN_ECONOMY

https://www.livemint.com/industry/banking/indian-banks-are-in-for-a-20-trillion-hole- 11594908292074.html

https://www.ceicdata.com/en/indicator/india/non-performing-loans-ratio

https://www.researchgate.net/publication/339657969_sectorwise_comparative_analysis_of_nonperf orming_assets_of_selected_private_sector_and_public_sector_banks_of_india.

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Published

2021-04-30

How to Cite

Lohia, P. . (2021). TITLE: THE COVID-19 MORATORIUM: A REPRIEVE AND NOT A WAIVER. The Journal of Contemporary Issues in Business and Government, 27(2), 2514–2527. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/1154

Issue

Vol. 27 No. 2 (2021): The journal of contemporary issues in business and government

Section

Articles

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