In an effort aimed at alleviating the financial burden on entrepreneurs in Manipur, Chief Minister N Biren Singh announced on Wednesday that the Reserve Bank of India (RBI) has extended the moratorium on loans until September 2024.
This decision comes amid the prolonged economic challenges exacerbated by the COVID-19 pandemic and the 15 months long ongoing crisis in the state.
Speaking on the floor of the House during the zero hour, the chief minister informed that only 30 per cent of eligible loan holders had availed themselves of the initial extension, which was in effect from May 4, 2023, to May 4, 2024. Encouraging all eligible loan holders to seize this opportunity, CM Biren emphasised the importance of applying for the extended moratorium, now valid until November 20, 2024.
The announcement has been met with widespread approval from various trade bodies in Manipur, including the Manipur Chamber of Commerce and Industries (MCCI), All Manipur Entrepreneurs Association (AMEA), and Business Excellence Group.
Speaking at a press conference held in Imphal, secretary of MCCI, H Anil, highlighted the profound hardships faced by entrepreneurs in Manipur over the past few years.
He cited the dual impact of the COVID-19 pandemic and the ongoing crisis, which has persisted for 15 months, leading to severe financial strain among businesses.
In addition to welcoming the moratorium extension, Anil urged the government to consider a one-time financial package. He proposed that the package should include subsidies covering at least 50 percent of outstanding dues.
Such measures, he argued, would provide much-needed relief to entrepreneurs grappling with the financial repercussions of the ongoing crisis.
Meanwhile, the state government on Wednesday announced that the relief measures given to bank borrowers due to the present law and order situation has been further extended, given the prevailing circumstances in the state.
A release issued by Director (Institutional Finance) Manipur, Anna Arambam stated that taking into consideration the economic hardship faced by the people, the state government has taken up the matter with the Ministry of Finance and RBI, and it has been approved to extend the timeline for implementation of the relief measures upto September 20.
All those borrowers, whose repayment capacity have been severely affected due to disruption of economic activities and loss/damage of economic assets, including agriculture and allied activities may contact the concerned banks for availing the moratorium and other rehabilitation/ restructuring measures by September 20, it stated.
It recalled that the Government of Manipur had issued Notification No. OTH-IF-2/3/2023- DIF-DIF dated June 21, 2023 for taking up relief measures under RBI's (Relief Measures by Banks in Areas Affected by Natural Calamities) Directions, 2018.
Accordingly, banks have provided relief measures by way of rescheduling of existing loans and sanctioning of fresh loans as per the emerging requirements of all loan borrowers (Agri, MSME and other retail loans), it stated.
Moratorium period was also extended up to 12 months from the date of implementation of the rehabilitation/restructuring measures. Further, for retail loans under P-segment (Personal/Pension/Vehicle/Housing loans, etc), EMI repayment was deferred by 12 months, it mentioned.
It said that the timeline for extension of the above relief measures ended on March 20, 2024. However, given the circumstances still prevailing in the State, it has not been possible for many of the loanees to come forward to avail the moratorium/re-structuring during the previously prescribed timeline for extension of the relief measures, it added.
