A Safe Harbour for Borrowers During COVID-19 Pandemic - Discussion on RBI Moratorium vis-à-vis Asset Classification

Published On: 14/04/2020

Practice Area: Dispute Resolution


Amit Jajoo
Sushmita Gandhi
Bhargav Kosuru
Darpan Bhatia
While India remains under a lockdown and a state of siege prevails, the Reserve Bank of India ('RBI') has provided a set of directives granting a safe harbour of moratorium for a period of 3 months to borrowers, in an attempt to mitigate the adverse impact of the pandemic on the economy and with a view to revive growth and mitigate the burden of debt servicing. The applicability and interpretation of the circulars came up before the High Courts who have, after a prima facie consideration, protected the interests of the borrowers. In light of this, INDUSLAW's Amit Jajoo, Sushmita Gandhi, Bhargav Kosuru and Darpan Bhatia examine.