Due to Covid-19, the Reserve Bank of India announced Loan Moratorium Scheme till August end to help borrowers who had income loss due to lockdown.
But many borrowers who do not even have income issues opted for the Moratorium scheme.
Micro Finance Institutions in the country are facing issues due to misinformation spread by the local media and politicians regarding the terms of the Moratorium.
Some borrowers, especially women borrowers in rural areas are made to believe that it is a loan waiver scheme.
MFIs are having a hard time convincing people that loan moratorium and loan waiver are different things. Due to this, MFIs have asked for the help of RBI to help them create awareness for the loan moratorium scheme.