MORATORIUM - NEED OF THE HOUR!

 We have come across nature’s fury almost every year but the happy point to notice is that in all such cases it is confined to particular areas or State or region or at the most the country. 

Have you ever come across flood havocs through out the world? 

How many people are aware of volcanos? 

How many places are hit by earth quakes at a single point of time? 

The answer is a definite NO. However, Covid-19 gave us international brotherhood in distress !!

Since March, 2020, our movements are curtailed and even when relaxed people are afraid to stir out because everyday we get a score of its devastation similar to not what we count in test cricket, not even of the one in one day international but of the great IPL T20. Thus several establishments are just shut with no body asking them to keep it closed. Many people are afraid to utilize public transport even if offered free ride !! That is the fear Covid – 19 has spread. Such fear is across the world and it has not made any discrimination as to rich or poor. Celebrities too are made to cover their face while Corona warriors move as if they are Astronauts. Even bodies of the dead are not handed over to the relatives.

With fear of such magnitude spread across the world, even Astrologers have failed to predict as to from when the movement throughout the world will be normal. The question then is from when can I earn my bread, butter and jam. Forget about butter and jam, even to earn just plain bread seems like a distant dream. Does it mean people are sleeping? Definitely no. In Bangalore, auto drivers known for their famous practice of brushing away intended passengers or just looking the other way have come down to such a level that they are prepared to wait for the passenger, even for their return pick up. Business establishments are ready to open in full swing but from where do they find customers? Food vessels in hotels are barely reaching their bottom. Farmers are bringing their crops to your door step to entice you to come out.

Prior to March, 2020, this was not the status. Under the vibrant leadership of our Prime Minister and accepting his call of “Make in India”, all intelligent and business minded were in a queue before the banks planning different adventures. Homeless grabbed the offer of the Government granting subsidy to have a shelter of their own.

Different incentives were offered by financial institutions not only to offer loan but also to take over loans existing in other institutions with tempting reductions. It looked as if Deepawali or New Year Gifts are being offered throughout the year.

Was it a sin to stand by the Government or accept attractive offers advertised by the financial institutions? Thanks to sane thinking of the concerned, moratorium was introduced but unfortunately in instalments. Were they under the impression that Corona stops today, income flows from tomorrow? 

What a great thinking!!

When moratorium was introduced, advice in the form of articles appeared in almost all news papers cautioning the people about the ill effects of accepting moratorium which induced many to sell their hard-earned jewels to keep up their schedule of EMIs. 

How long can such sales be there? 

It can only be till the jewels vanish from their steel cupboard. 

Is this the way Banks should have treated their customers?

What is the problem in extending the moratorium? 

According to me, moratorium is nothing but a way of granting a fresh loan to a customer. Is it not the business of the Bank to lend money? Instead of giving loans to a new customer, Banks will only be lending money to a customer already on record. The only loss for them is that they will not be getting attractive administrative charges termed as processing fees since they have already perused the house documents offered as security or project reports.

True, accepting moratorium will land in extended financial commitment. Is it not better to accept such extended EMIs than in defaulting the EMIs?

Now there is a demand for waiver of interest. Definitely banks will be seriously hit if such demands are accepted. However, just think to yourself as to how many cases the Government has come out in support of with schemes of loan waiver. Are not the State Governments standing in a queue to announce waiver of farm loan? I am aware that waiver of farm loan is to benefit a farmer who is faced with natural calamities both flood and drought. Is not the present situation a national calamity? If the answer is yes, then why the discrimination between a farmer and a non-farmer in the matter of clearing of loans or are they waiting for several suicides by borrowers similar to farmers suicides?

It is shocking that the Banks are keen to treat loan accounts as NPAs. Is it their intention to grab secured properties at throw away prices in so called public auction they conduct through a mediator which practice the RBI itself has found fault with and has deprecated? If the banks are going to treat the present financial difficulties as an opportunity to make money off of people who are struggling, it is indeed a shame, and shows that our faith in them was misguided.