Loanees denied benefits of RBI Covid package
Source: The Sangai Express
Imphal, September 03 2020:
Many people who have been using loans taken from cooperative financial institutions as their working capitals have been denied the benefit of COVID-19 regulatory package announced by RBI.
Sources said that the working capitals which loanees took as loans from cooperative financial institutions were severely dented on account of several measures taken up by the Government to check the spread of COVID-19.Apart from denting the working capitals, the containment measures taken up by the Government brought the businesses done by the loanees on the verge of complete breakdown.
A circular about COVD-19 regulatory package was issued by the RBI General Manager on March 27 this year.
The RBI Governor issued a similar circular on the same day.
These circulars said that the period of repayment of loans should be extended for loanees who took loans from financial institutions or commercial banks including local area banks and regional rural banks and the banks should also assist the loanees so that their (loanees) activities are not slowed down.
The term 'financial institutions' covers Nationalised banks like SBI, Punjab National Bank, Bank of Baroda, Vijaya Bank, Punjab & Sind Bank, Central Bank etc, according to the sources.
The relaxation or benefits guaranteed by the circular issued on March 27 are also entitled to other loanees who took loans from other financial institutions, urban cooperative banks, State cooperative banks, district cooperative banks, all India financial institutions and non-banking financial companies including housing financial companies.
As per the COVID-19 regulatory package, the money needed by financial institutions for giving financial support to loanees would be provided by RBI and it would be based on the documents already submitted by the loanees, said the sources.
In line with the COVID-19 regulatory package which would remain in force till June 20, 2021, Nationalised banks operating in the State have started delivering assured benefits to their loanees.
Based on the loan amount they have already repaid, loanees have been sanctioned additional loans of 25 per cent to 30 per cent of their balance amounts in order to refurbish their working capitals.
However, loanees of cooperative financial institutions are not getting any such financial support, the sources added.