New Delhi, April 13 -- Indian banks have approached the Reserve Bank of India (RBI) seeking approval for a targeted loan repayment moratorium for micro, small and medium enterprises (MSMEs), citing economic disruptions arising from the ongoing US-Iran conflict
The proposal, submitted by the Indian Banks' Association (IBA), recommends an opt-in moratorium framework under which relief would be extended only to MSMEs that formally request it. The move is aimed at cushioning vulnerable businesses from potential demand shocks and income disruptions linked to the conflict, according to NDTV.
The ongoing US-Iran conflict is likely to materially impact demand for MSME-manufactured products, thereby affecting their cash flows and repayment capac...