The nation’s financial controller, Reserve Bank of India RBI has recorded new sworn statement in the Supreme Court in the credit ban case. In the testimony, the Reserve Bank of India has said that it is beyond the realm of imagination to expect to give more alleviation to area influenced by the Covid pandemic. The financial controller has likewise said that it is preposterous to expect to broaden the ban time frame past a half year.
The RBI said that a long ban surpassing a half year “may bring about vitiating the general credit discipline which will debilitatingly affect the cycle of credit creation in the economy”. The RBI further said that the move can “increment the dangers of wrongdoings post resumption of booked installments” and “intensify the reimbursement pressures for the borrowers”.