Moratorium

noun (countable)

/ˌmɒrəˈtɔːrɪəm/

A legally sanctioned suspension of an obligation — typically the repayment of a debt or the enforcement of a law — for a specified period. In Indian banking, moratoriums are granted by the RBI or courts during systemic stress; the most notable instance was the six-month loan repayment moratorium (March–August 2020) under Section 21 of the RBI Act, extended to borrowers across all scheduled commercial banks during the COVID-19 pandemic.

✍️ Usage in a UPSC answer

The Supreme Court's 2020 ruling in Gajendra Sharma v. Union of India upheld the RBI's six-month moratorium on EMI payments as constitutionally valid, directing that accrued interest during the deferral period be waived for loans up to Rs. 2 crore.

Synonyms

deferralsuspensionpostponementreprievestandstill

Antonyms

enforcementaccelerationforeclosureimmediacy

🌱 Word Family

moratory (adjective, archaic), moratoria (plural noun)

🔡 Root

Medieval Latin moratorium = that which delays; from morari = to delay, from mora = delay

📜 Etymology

The Latin root mora (delay) passed into legal Latin as moratorium in medieval debt-law contexts. The word entered English legal usage in the 19th century, appearing in British statutes dealing with wartime debt obligations. It acquired its modern banking-policy resonance after the 2008 global financial crisis, when various jurisdictions invoked moratoriums to prevent a cascade of defaults.

🧠 Memory Hook

More-at-or-ium: the borrower gets 'more time at the door' before the lender can knock. The Latin mora literally means 'delay at the threshold.'

💰 Indian Economy 📖 Seen in: Indian Economy — Growth, Planning & De...

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