New Delhi, Mar 27: While welcoming the decision of the Reserve bank of India(RBI) to cut the repo rate and measures to provide more liquidity, former finance Minister P Chidambaram on Friday termed RBI’s direction on deferment of EMI dates 'ambiguous and half-hearted'.
In a series of tweets, Mr Chidambaram said, 'I welcome the RBI’s decision to cut the repo rate and measures to provide more liquidity. However, the RBI’s direction on deferment of EMI dates is ambiguous and half-hearted. The demand is that all EMI due dates must be automatically deferred. 'I had suggested that all due dates falling before 30 June may be deferred to 30 June. Borrowers have been made dependent on the bank concerned and will be disappointed.'
The RBI, on Friday, announced a host of measures aimed at minimising the damage from Covid19. The MPC decided by 4-2 majority to reduce repo rate by 75 basis points to 4.4 per cent. The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor. (UNI)