What is the RBI Moratorium Scheme?

In the wake of the Covid-19 pandemic, the RBI introduced a moratorium scheme for all loans. At first, it was offered for March-May, 2021 but was later extended to three more months (June-August, 2021). The aim was to give temporary relief to borrowers who had trouble repaying loans in the pandemic-induced economic instability. Since the economic impact continued into 2021, the RBI declared on May 5, 2021, that if the moratorium period is granted, it may be available for 2 years at most. It shall be operational right after the 2.0: Resolution of Covid-19-related stress of Individuals and Small Businesses is implemented.              What is Moratorium Period? Usually, it would help if you started repaying a loan right after it was granted. However, a moratorium period is legally authorised to delay the repayment so that you can avail of a grace period before starting to pay fixed EMIs. The moratorium period applies to all kinds of lo...