Harsh Roongta explains the program and whether or not it would be effective.
The Reserve Bank of India (RBI) governor Shaktikanta Das on August 6 extended a lifeline to borrowers affected by COVID-19-induced economic crisis. He announced that banks can facilitate a one-time loan restructuring for borrowers.
As the moratorium on repayments will end on August 31, the loan restructuring will help borrowers to hold off the crisis for now. Banks will put in place a loan recast framework for COVID-19-affected borrowers by December-end. Typically, it’s the corporates that benefited from loan restructuring programs until now, but even retail borrowers will be offered this option for the first time.
But how effective is the restructuring program? To understand this, Moneycontrol's Preeti Kulkarni talks to Harsh Roongta, a veteran in the retail loan space. He heads Fee Only Investment Advisors, a SEBI-registered investment advisory firm.Tune in to this Simply Save episode for more.