On March 27, 2020, to mitigate the impact of COVID-19 on the
financial market, the Reserve Bank of India (the
"RBI") announced a regulatory package
(the "Regulatory Package"). Among other
measures, the Regulatory Package allows for a specific moratorium
on the repayment of debt, relaxation of certain norms for working
capital facilities, and infusion of liquidity into the financial
market.
Regulatory Package grants a 'Moratorium'
– What is it, and to whom does it apply?
The RBI has permitted all commercial banks, including regional
rural banks, co-operative banks, all-India financial institutions,
non-banking finance companies ("NBFCs")
and housing financing companies (together, the
"Financial Institutions") to grant a
moratorium for up to 3 months on the payment of all principal,
interest and repayment instalments between March 1, 2020 and May
31, 2020 ("Moratorium Period") to their
borrowers ("Moratorium"), for all term
loans, including credit card dues. For
