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Govt for loan moratorium
Mar 30 2026 6:27PM
A 3- or 6-month moratorium on loan repayment is being considered, with multiple proposals in this regard discussed in the Finance Ministry.

As per the CNBC-Awaaz report, under the proposed moratorium, borrowers would be given relief from paying loan instalments for a fixed period.

Relief measures are also being examined for industries affected by the Iran war, particularly micro, small and medium enterprises (MSMEs), the report added.

The government is reviewing the impact of the ongoing energy crisis on industries, as concerns over rising costs and disruptions continue.

Industries and exporters have also reportedly demanded the introduction of a loan moratorium to ease financial stress, the CNBC-Awaaz report further said.

Meanwhile, Finance Minister Nirmala Sitharaman on Monday said that India's economic fundamentals remain strong and that, compared to other emerging market economies, the Indian rupee is "absolutely going fine" against the US dollar.

Since the start of the West Asia conflict on February 28, 2026, the rupee has depreciated by 4.1 per cent, closing at Rs 94.82 per USD on March 27, 2026.

Responding to a supplementary question in the Lok Sabha on rupee depreciation, Sitharaman said, "India's economy is strong, our fiscal situation is strong, and the entire world is praising our fiscal deficit management. Our forex reserves are solid."

"Compared to other emerging economies, the rupee is doing fine (theek chal raha hai)... absolutely going fine," she added.

In a written reply, she further said the rupee's depreciation is not specific to the Indian currency alone, as several major Asian currencies have also weakened since the beginning of the West Asia conflict.

She noted that certain peers, including the South Korean won, Thai baht, and Philippine peso, have declined more against the US dollar-by 4.6 per cent, 5.5 per cent, and 4.8 per cent respectively.

Minister of State for Finance Pankaj Chaudhary also said that the value of the rupee is market-determined and influenced by multiple factors.

He added that the government and the Reserve Bank of India are closely monitoring the movement of the currency.