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RBI Extends Moratorium On Loan EMIs For Three Additional Months Till 31 August
Swarajya Staff
May 22, 2020, 10:58 AM | Updated 10:58 AM IST
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Reserve Bank of India Governor Shaktikanta Das on Friday (22 May) announced a three month extension on a loan repayment moratorium which was announced in March keeping in mind the disruption caused due to the Covid-19 pandemic.
The moratorium on repayment of term loans and working capital loans have as a result been extended till 31 August. This decision has also been taking in light of the lockdown extension.
Three-month moratorium we allowed on term loans&working capitals we allowed certain relaxations. In view of the extension of the lockdown&continuing disruption on account of #COVID19, these measures are being further extended by another 3 months from June 1 to Aug 31: RBI Guv pic.twitter.com/YKulKb9bD0
— ANI (@ANI) May 22, 2020
The RBI also cut its repo rate by 40 basis point to 4 per cent and reduced the reverse repo rate to 3.35 per cent from 3.75 per cent.
The RBI Governor said the MPC members met for three days in an off-cycle meeting, that was otherwise scheduled for 3-5 June. He added that GDP growth in 2020-21 is expected to remain in the negative category with some pick up in second half.
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