Sonia Gandhi urges PM Modi to defer EMI & loan repayments for a period of 6 months

March 27: The national lockdown on the face of coronavirus outbreak has led to great financial implications. It is in this backdrop that Congress President Sonia Gandhi wrote to Prime Minister Narendra Modi, urging the government to defer EMI and loan repayments for a period of six months. “Centre might consider deferring all EMIs for 6 months; interest charged by banks for this period may consequently be waived. All loan installment deductions from salaries of government employees may also be deferred for six months,” she said.

Later during the day, Finance Ministry also asked the Reserve Bank of India (RBI) to consider emergency measures to help borrowers cope with economic pressure triggered by the COVID-19 outbreak. Department of Financial Services Secretary Debashish Panda reportedly wrote a letter to the RBI on Tuesday suggesting a moratorium of a few months on the payment of equated monthly installments (EMIs), interest & loan repayments and a relaxation in the classification of bad loans.

Meanwhile, Finance Minister Nirmala Sitharaman announced that the government will pay the EPF contribution both of the employer and the employee for the next three months. This scheme will be applicable for organisations with up to 100 employees, where 90 per cent of employees draw less than Rs 15,000 salary.