New Delhi: The Reserve Bank of India (RBI) Governor Shaktikanta Das, on Friday made some suprising announcement with a cut of 75 basis points in the repo rate to 4.4 per cent.
The decision came in after an unscheduled meeting of its Monetary Policy Committee.
Repo rate is the key interest rate at which the RBI lends short-term funds to commercial banks.
“Four out of the six members of the Monetary Policy Committee voted in favour of the move. The economic outlook globally is uncertain and obviously negative… Financial stability is the topmost priority of the RBI in this crisis,” said Shaktikanta Das.
It also announced that banks are permitted to allow a three-month moratorium for on payment of EMIs on all term loans that were outstanding on March 1.
The surprise moves came as India entered the third day of a 21-day countrywide lockdown to curb the rapid spread of the coronavirus pandemic.
