Deferment Of Interest On Working Capital Facilities

Lending institutions can defer by three months payment of interest outstanding as on March 1 on working capital facilities sanctioned in the form of cash-credit and overdraft and such. The accumulated interest for the period will be paid at the end of the deferment period. Aditionally, the RBI governor has assured that the moratorium on term loans and the deferment of interest on working capital will not result in asset classification downgrade.