A day after Modi govt began its economy rescue in right earnest with a Rs 1.70 lakh crore coronavirus counter, the Reserve Bank of India joined the big fight today with a host of measures aimed at minimising the damage from Covid-19.
These measures come just hours after Moody’s Investors Service cut India’s growth forecasts for 2020 calendar year to 2.5% from 5.3%.
The MPC decided by 4-2 majority to reduce repo rate by 75 basis points to 4.4 per cent.
The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor.
The great EMI relief
A moratorium of three months of EMIs on all outstanding loans was announced.
The statement says: “All commercial, regional, rural, NBFCs and small finance banks are being permitted to allow 3-month moratorium on payment of instalments in respect of all term loan EMIs outstanding on March 31.”