RBI permits all lending institutions to allow 3-month moratorium on payment of instalments on term loans on Friday.
Moratorium on term loan, deferring of interest on working capital will not classify as default, not to impact credit history of borrower
The Reserve Bank of India(RBI) on Friday cut repo rate by 75 basis points. This was stated by the RBI Governor, Mr. Shaktikanta Das.
The RBI also advanced its monetary policy committee meeting. The monetary policy committee voted 4:2 majority to cut 75 basis points to 4.4 per cent, he said. He said as we are living in an extraordinary situation, war effort needed to be mounted against coronavirus using conventional, unconventional tools. The RBI is at work calibrating action to meet any liquidity mode, he said.
*Global slowdown can deepen with adverse implication for India; crude oil slump upside for India: Das
The major highlights of RBI decisions and projections:
*Food prices may soften further on back of record foodgrain production
*Monetary policy committee refrains from giving out growth, inflation outlook for coming fiscal on uncertain outlook
*Outlook highly uncertain and negative in view of outbreak of Covid-19
*Financial markets are under stress; require steps by central bank for market stability and revival of economic growth
*RBI to undertake repo operation of up to Rs 1 lakh crore to infuse liquidity into market
*Cash reserve ratio of all banks reduced by 100 bps to 3 pc with effect from March 28 for 1 yr; to release Rs 1.37 lakh cr liquidity
*Rs 3.74 lakh crore liquidity to be injected into system through measures announced today
*RBI Governor says all instruments - conventional and unconventional - are on table to support financial stability and revive growth