TNI Bureau: While announcing a slew of banking measures to fight the situation arisen out of lockdown due to Coronavirus outbreak, RBI Governor Shaktikanta Das has permitted all banks and NBFCs to allow a 3-month moratorium on EMIs on all term loans.
It came as a huge relief for the middle class and salaried class. Interest payments on working capital loans have also been deferred for 3 months – relief for MSMEs.
Key Highlights:
? Repo rate reduced by 75 basis points to 4.4.%.
? Reverse repo-rate reduced by 90 basis points to 4%.
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? Cash Reserve Ratio (CRR) of all banks reduced by 100 basis points to 3% of Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning March 28 for a period of 1 year.
? Liquidity measures collectively will inject Rs 3.74 trillion money into the system.
? All commercial banks permitted to allow a 3-month moratorium on repayment of all term loan EMIs outstanding as on March 1, 2020. However, it’s up to the Banks to issue guidelines in this regard.
? Interest payments on working capital loans deferred for 3 months.
? All money deposited in Banks are safe. No panic withdrawal needed.
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