The Reserve Bank of India (RBI) said on Friday the three-month moratorium on payment of instalments on term loans to banks, non-bank financial institutions (NBFCs), including housing finance companies, and other financial institutions is being extended by another three months.

“In view of the extension of the lockdown and continuing disruption on account of Covid-19, these measures are being further extended by another three months from June 1 to August 31,” Das said during a press conference through video, his third such address to the media during the coronavirus pandemic.

Das said the decision was taken in an unscheduled meeting of RBI’s monetary policy committee (MPC).

The announcements also came as the country entered the fifth day of the fourth phase of the nationwide lockdown to curb the spread of the virus.

The central bank had allowed financial institutions a three-month moratorium on payment of instalments on term loans on March 27.

The moratorium allowed by RBI will help borrowers in easing the burden on their savings and avoid turning defaulters.