MUMBAI, April 5 -- Non-banking finance companies (NBFCs) are in a fix as banks apply different rules to offer term loan moratorium under the relaxations announced by the Reserve Bank of India (RBI).

State Bank of India (SBI) has decided not to offer any moratorium to financial institutions but will provide them funding through the targeted long-term repo operations (TLTRO) window, where banks can invest in corporate bonds, commercial papers and non-convertible debentures (NCDs) issued by these institutions.

However, the rest of the industry is in a quandary whether to follow the country's largest bank or the rules framed by industry body Indian Banks' Association (IBA). According to FAQs released by the IBA, in consultation with all ban...