The Reserve Bank of India delivered a slew of measures it is taking to mitigate damages caused by Covid-19 .

These are situations where the default rates are expected to be high but we need to remember that the defaults are not intentional.

He too welcomed all the measures, especially the moratorium on term loans but believes that we need to wait for the banks’ implementation here.“As RBI has allowed banks to allow a moratorium, it depends on what kind of steps the banks are willing to take in this regard.

The move is, however, not going to impact the banks’ credit quality as these loans will not be classified as NPAs.

At this point of time we just need to wait for the implementation adopted by each bank,” he said.He added that on the moratorium, the regulator has not given any clarity if the credit card due falls under the term loans.“Besides, the ease of interest rates on working capital will help small businesses to stay afloat during such economic crisis,” he said. | To read full story, visit https://startuparound.com/read/1585301405.595768/Startup-fraternity-hails-loan-deferment-move-by-RBI;-some-wait-for-banks’-implementation?ref=audio_experience