Maharashtra Deputy Chief Minister Ajit Pawar on Friday demanded that the Reserve Bank of India give clear instructions to banks and other financial institutions to stop loan recovery for three months. The banks will not heed a mere "request", he said.
The RBI earlier on Friday allowed banks to put on hold EMI payments on all term loans for three months as part of relief measures in the wake of coronavirus pandemic.
Pawar, who is also the state's finance minister, said the Central bank should issue clear instructions regarding the three-month moratorium.
"Banks will not heed just requests. The RBI decisions announced today will partially help revive the economy, which is affected by the coronavirus outbreak," he said.
The national lockdown will have an impact on the economy and some intervention from the RBI was expected, he said.
The reduction in repo rate will bring the loan interest amount down, he said, adding that reducing CRR would help the banks.
But the RBI needs to give clear instructions to banks for three-month moratorium of loan recovery, Pawar added.
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