Loan moratorium: Further extension may affect overall credit discipline, RBI to Supreme Court

A 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 Reserve Bank of India has told the Supreme Court. It said many petitioners have prayed for directions to the RBI to announce sector-specific reliefs instead of a “monolithic” resolution framework.