Increasing EMI and government to the rescue

Another hole in the common mans pocket with an ever increasing rate of interest!! To ensure some comfort to this critical situation the government has stepped into the picture. There was an official letter sent to public sector banks by the ministry, asking them not to increase the EMI rates and levy burden on borrowers which has affected their capacity to their loans.
The ministry even suggested them to increase the tenure instead of increasing the EMI against all kind of loans.
In the time of economic slowdown and high inflation, the banks need to be more cautious while increasing the interest rates. This was said to an MD of a midsized public sector bank by the finance ministry.
The banks increased their rate by almost 300 basis points due to the policy rate rise by the RBI and the Apex bank raised policy rates 11 times in 16 months to resist inflation.
The central bank had questioned the asset quality of banks as the increase in EMI’s on individuals and the borrowers who had taken loans at a floating rate could get affected. They want them to increase the tenure period instead increasing the rate of interest which would give them more time and avoid default.
The public sector banks claim to have an increase in Non Performing Assets in the current financial year. As per the RBI data, personal dues were about 7 Lakh Crore as on 17th June which is about 17.3% more compared to previous year.