RBI Extends Moratorium On Loan EMIs For Three Additional Months Till 31 August

Reserve Bank of India Governor Shaktikanta Das on Friday (22 May) announced a three month extension on a loan repayment moratorium which was announced in March keeping in mind the disruption caused due to the Covid-19 pandemic.

The moratorium on repayment of term loans and working capital loans have as a result been extended till 31 August. This decision has also been taking in light of the lockdown extension.

The RBI also cut its repo rate by 40 basis point to 4 per cent and reduced the reverse repo rate to 3.35 per cent from 3.75 per cent.

The RBI Governor said the MPC members met for three days in an off-cycle meeting, that was otherwise scheduled for 3-5 June. He added that GDP growth in 2020-21 is expected to remain in the negative category with some pick up in second half.