On May 5, 2021 the RBI governor, in an unscheduled press conference, unveiled new plans for liquidity support to SMEs, MSMEs and individual borrowers. This was in light of the second wave of the Covid-19 pandemic and was dubbed ‘Moratorium 2.0’. This was a much needed relief measure as even after the first moratorium 30% of good borrowers were struggling to pay back.
What are the provisions of this scheme, why was it needed? how is this different from the earlier moratorium? And what supplementary measures were taken? All this and more on this week’s banking brief!
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