The Reserve Bank of India, on March 27, announced big relief for the middle class and small entrepreneurs waiting for the relief from RBI. Due to 21 days lockdown business are closed and people are staying in their home due to the announcement of 21-day lockdown. The moratorium of 3 months on all the loans EMIL will help middle class and working professionals in managing their finance in the tough situation.

The RBI governor has said that all banking institutions are allowed to offer a three-month moratorium on all loans. As per the RBI announcement the Banks and NBFC’s will be able to provide moratorium for a period of three months. All these are being done to avoid any classification of loans as NPA, during the 21-day lockdown period almost all the businesses are stopped.

This is the big announcement by RBI as industry, business class and individuals have been waiting for the relief from RBI.

This announcement is very big as the economy is under hardship, industries are shut down and there are changes of job loss due to the Coronavirus pandemic. The three-months moratorium is very big as many people won’t be able to pay loans due to job loss, salary cut or stopping of the factories/industries.

This three-month moratorium on EMI is also good for borrowers as this will help in easing the burden on their savings. This also avoids the fear of turning defaulters. This is going to be a big stimulus for the small industry and the working class.

Till now there are over 694 cases in India  and there are 16 deaths reported. The new case of Coronavirus is being reported from worldwide at an alarming rate.