New Delhi: To mitigate the economic impact of COVID-19 outbreak, the Reserve Bank of India (RBI) on Friday again reduced the key lending rates by 40 basis points.
Accordingly, the Monetary Policy Committee of the central bank in an unscheduled meet reduced the repo rate by 40 basis points to 4 per cent from 4.40 per cent.
Making the announcement, RBI Governor Shaktikanta Das said the reverse repo rate has been reduced to 3.35 per cent from 3.75 per cent.
Das said the central bank would maintain accommodative stance till growth revives.
Of all the measures announced, the extension of the moratorium for three months was the biggest one and is expected to provide a significant boost to companies who are unable to pay pending dues due to the lockdown.
The RBI went ahead with the move today and now the moratorium on terms loans will last till August 31.
“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 coronavirus, these measures are being further extended by another 3 months from June 1 to Aug 31,” he said.
Here are RBI’s top 5 Announcements
RBI cuts the repo rate by 40 bps to 4 per cent.
RBI cuts reverse repo rate by 40 basis points to 3.35 per cent.
The three-month moratorium extended from June 1 to August 31
RBI allocates Rs 15,000 crore to EXIM banks to avail US dollar swap facility. This will have a rollover facility to up to one year.
RBI offers another 90-days extension to SIDBI for the 90-day term loan facilities
