After it announced a 3-month moratorium during the early phases of the lockdown Reserve Bank of India (RBI) extended it on Friday. RBI Governor Shaktikanta Das held a press conference on Friday where important policy measures were announced.
What comes as a relief for sure was the moratorium on EMIs and term loan payments. Earlier the announcement provided relief to the customers till 31st of May for EMIs payment for loans outstanding as on 1st March. Now, you have June 1 to August 31 taking further from 31st May. Soon banks would offer extensions to customer as per announcement just as they did last time.
Apart from that taking loans would be more cheaper as the RBI cut the Repo Rate by 40 basis points from 4.4% to 4%. That is for new loan takers the EMIs would be quite a less as interest rates would be fairly low. Here are some of the key announcements from the side of the governor.
- Reverse repo rate slashed to 3.35%
- Industrial production shrinks by 17% in March
- GDP growth to remain in negative territory
- India’s foreign exchange reserves at $487 billion
Experts have said that ‘Extension of the moratorium can put pressure on the RBI’s balance sheet’. While the industry is looking at it as the major booster shot from the apex banks.