Mumbai, May 22:
Reserve Bank of India (RBI) Governor Shaktikanta Das today cut the repo rate by 40 basis points to 4% and also extended moratorium on all term loans by another 3 months. After the lockdown began, Das had slashed the benchmark interest rate (repo rate) by a massive 75 basis points and also announced a three-month moratorium to be given by banks to provide relief to borrowers whose income has been hit due to the lockdown. The loan moratorium has now been extended till August 31 for 6 months.
RBI will extend ₹15,000 crore line of credit to EXIM Bank
Finance Minister Nirmala Sitharaman, who recently announced the ₹20 lakh crore economic package in five tranches, will also hold a review meeting with CEOs of public sector banks (PSBs) today to discuss various issues, including loan disbursement, as part of efforts to revive the economy reeling under the COVID-19 impact.
Further the group exposure limit for lenders to corporates raised to 30% from 25%, Shaktikanta Das announced.
RBI has also increased export credit period to 15 months from 1 year.
-RBI will continue to be vigilant and will take whatever measures are needed to be taken due to the Covid pandemic, Shaktikanta Das assured.
-Government 10-year bond yields slumped 15 basis points after the repo rate cut.
-India’s foreign exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15th May, foreign exchange reserves stand at 487 billion USD.
-India seeing collapse of demand; electricity, dip in petroleum product consumption; fall in private consumption: Shaktikanta Das