Moratoriums don’t apply to Mutual Funds: Bombay HC

Why is it in news?
  • The Bombay High Court ruled that two circulars issued by the RBI granting moratoriums on payment of installments on term loans do not apply to mutual funds and debentures.
Details (from HC):
  • According to the circulars issued by RBI, moratoriums applies to following:
(1) All commercial banks
(2) All primary (urban) co-operative banks
(3) State co-operative banks
(4) District central co-operative banks
(5) All India financial institutions
(6) All non-banking financial companies and also deals with terms loans and working capital facilities provided by those entities.
Posted by Jawwad Kazi on 17th Jul 2020
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