Banks instructed to extend moratorium period
Source: Chronicle News Service
Imphal, July 06 2023:
Keeping in view the present situation in the state and to ease the problems being faced by the people, banks have been instructed to extend the moratorium period for repayment of loans up to 12 months.
According to a notification issued by the finance department, the ongoing social disturbances since May 3 last have adversely affected all sections of the society and economy in the state.
Many banks have reported huge increase in stressed assets of their loan portfolios.
Keeping in view the present situation, the state govern ment issued Notification No.OTH-IF- 2/3/2023-DIF-DIF dated June 21, 2023 whereby relief measures may be taken up under RBI's (Relief Measures by Banks in Areas Affected by Natural Calamities) Directions, 2018 .
The notification further said that as a follow up of the said notification, a special SLBC meeting was convened on July 1, 2023 during which it was decided that banks will provide relief measures by way of rescheduling of existing loans and sanctioning of fresh loans as per the emerging requirements of all loan borrowers (Agri, MSME and other retail loans) .
Banks have been instructed to extend the moratorium period up to 12 months from the date of implementation of the rehabilitation/restructuring measures and for ret ail loans under P-segment (Personal/ Pension/Vehicle/Housing loans etc), EMI repayment t may be deferred by 12 month s, it said.
Those borrowers, Whose repayment capacity have been severely affected due to disruption of economic activities and loss/damage of economic assets, including agriculture and allied activities may contact the concerned banks for availing the moratorium and other rehabilitation/restructuring measures, which, however, will not be applicable to those accounts which have been classified as NPA at the close of business as on May 3, 2023, the notification added.
The opening of bank branches and ATMs was also reviewed by the chief secretary on Thursday.
Out a total of 241 bank branches in the State, 218 have been opened as July 6,2023.Efforts are being made to make the remaining 23 branches operational at the earliest.
Out of 396 ATMs, 320 are functioning.
Banks were requested to make all-out efforts to ensure that the remaining 70 ATMs are also made functional.
The government conveyed its readiness to extend all possible assistance in this matter.