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Longer Break May Hit Credit Discipline: RBI To Supreme Court; Other Big Stories

The Reserve Bank of India has appealed to the country's top court to let banks classify loans as nonperforming, saying a ban imposed to help borrowers in the COVID-19 pandemic could greatly harm the nation's financial system.

  • The Reserve Bank of India (RBI) has told the Supreme Court that the moratorium on loan repayment cannot be extended beyond six months because that could affect "credit discipline" ; requested the Court to lift the stay on classifying defaulting accounts as non-performing assets (NPA) because not doing so would affect the central bank's regulatory powers; and pointed out that banking solutions cannot address the structural problems of the real estate sector.
    The Reserve Bank of India (RBI) has told the Supreme Court that the moratorium on loan repayment cannot be extended beyond six months because that could affect "credit discipline" ; requested the Court to lift the stay on classifying defaulting accounts as non-performing assets (NPA) because not doing so would affect the central bank's regulatory powers; and pointed out that banking solutions cannot address the structural problems of the real estate sector.
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  • Fifty per cent of the seats will be reserved for women in the forthcoming elections to the council of the greater Hyderabad Municipal Corporation. This works out to 75 of the 150-ward GHMC Council.
    Fifty per cent of the seats will be reserved for women in the forthcoming elections to the council of the greater Hyderabad Municipal Corporation. This works out to 75 of the 150-ward GHMC Council.
  • The Reserve Bank Of India (RBI) opposed extending the six months moratorium period (March 1 to August 31) any further, telling the Supreme Court that it is upto individual banks to extend the moratorium period till two years on a case to case basis. Loan moratorium exceeding six months might result in vitiating the overall credit discipline, which will have a debilitating impact on the process of credit creation in the economy, the RBI told the Supreme Court on Saturday.
    The Reserve Bank Of India (RBI) opposed extending the six months moratorium period (March 1 to August 31) any further, telling the Supreme Court that it is upto individual banks to extend the moratorium period till two years on a case to case basis. Loan moratorium exceeding six months might result in vitiating the overall credit discipline, which will have a debilitating impact on the process of credit creation in the economy, the RBI told the Supreme Court on Saturday.
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