Today morning Reserve Bank of India unleashed a wave of measures at tackling the Covid-19 pandemic’s effects on the Indian economy. Reserve Bank of India has announced that all banks and lending institutions can allow a 3 month moratorium on all loans outstanding as of 1st March, 2020, that includes all forms of retail loans and EMIs.
RBI also announced that it would permit all the banking institutions within India, including the housing finance companies and other NBFCs, to allow a 3 month moratorium on payment of installments on term loans in view of the disruption caused by covid-19 outbreak. Reserve Bank of India also added, “Deferment of loan repayment will not impact the credit history of the borrower.”
RBI also cut the interest rate by 75 basis points to 4.4 per cent. RBI Governor predicted a big global recession and said that Country India would not be immune.
The announcement by RBI came as our country entered the 3rd day of 21 days countrywide lockdown to curb the spread of coronavirus, which has infected nearly 700 in our country.
On the otherside, Prime Minister Narendra Modi praised the series of announcements made by the Reserve Bank of India. Finance Minister Nirmala Sitharaman also lauded the move.