4 min read.Updated: 13 Apr 2020, 01:42 PM ISTDeepti George,Samir Shah
Non-banking finance companies, or NBFCs, and others that serve poorer sections of society need generous financial backing too
The Reserve Bank of India (RBI) has permitted banks and non-banking finance companies (NBFCs) to reschedule payments on all loans for the period between March and May 2020 to stem the impact of the covid-9 pandemic. Many banks and NBFCs have followed suit to offer such moratoriums to their customers. However, FAQs—answers to frequently asked questions—put together by the Indian Banks’ Association (IBA) and circulated by the Ministry of Finance categorically state that NBFCs, micro-finance institutions (MFIs) and housing finance companies (HFCs) are not being considered under the scheme. There have also been reports from some NBFCs that they have not been offered such a moratorium on their loans from a leading bank on the grounds that this would not apply to NBFCs.
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