The Reserve Bank of India (RBI) has extended the moratorium for three months for repayment of loans in view of Coronavirus.
The Reserve Bank of India (RBI) has extended the moratorium for three months for repayment of loans in view of Coronavirus. RBI Governor Shaktikanta Das gave this information to the media during the briefing. At present, there is news of relief for those who have taken loan. The loan repayment EMI has been extended by three months. Apart from this, RBI Governor Shaktikanta Das said that GDP growth will be negative in FY 2020-21.
At the same time, the Reserve Bank of India (RBI) has cut the repo rate once again. RBI Governor Shaktikanta Das said during a media briefing today (Friday), ‘The repo rate is being reduced. The RBI has cut 40 basis points. Now the repo rate is four percent. The outlook for inflation is highly uncertain. The RBI has reduced the reverse repo rate to 3.35 percent. It is expected that fiscal and administrative measures will gain momentum in the second half of 2020-21. With the reduction in repo rate, it is expected that loans can now be cheap.
The governor said, “GDP growth is expected to be in negative territory in 2020-21. The six-member Monetary Policy Committee voted in favor of a 0.40 percent reduction in the interest rate by 5: 1. Demand in India is declining, electricity, petroleum product consumption is declining, private consumption is declining. Private consumption has suffered the most due to the outbreak of COVID-19. Investment demand has stopped. The revenue of the government has been badly affected due to sluggish economic activity amid the outbreak of Corona.
Let us tell you that in the same month, in the midst of the corona crisis, PM Narendra Modi announced a relief package of 20 lakh crores. Finance Minister Nirmala Sitharaman held a five-day press conference to give detailed information about the package. The finance minister had said that amid the coronavirus epidemic, it was announced by PM Modi that a package of Rs 20 lakh crore would help in reviving the economy.