EMIs put on hold, big-bang interest rate cut as RBI joins fight against coronavirus

Mumbai:  The RBI on Friday put on hold EMI payments on all term loans for three months and cut interest rate by steepest in more than 11 ...

Mumbai:  The RBI on Friday put on hold EMI payments on all term loans for three months and cut interest rate by steepest in more than 11 years as it joined the government effort to rescue a slowing economy that has now got caught in coronavirus whirlwind.

The Reserve Bank of India (RBI) cut repo to 4.4 per cent, the lowest in at least 15 years. Also, it reduced the cash reserve ratio maintained by the banks for the first time in over seven years. CRR for all banks was cut by 100 basis points to release Rs 1.37 lakh crore across banking system.

The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor.

RBI Governor Shaktikanta Das predicted a big global recession and said India will not be immune.

It all depends how India responds to the situation, he said.

Global slowdown could make things difficult for India too, despite some help from falling crude prices, Das said, adding food prices may soften even further on record crop production.

Aggregate demand may weaken and ease core inflation further, he noted.

The liquidity measures announced include auction of targeted long-term repo operation of 3 year tenor for total amount of Rs 1 lakh crore at floating rate and accommodation under Marginal Standing Facility to be increased from 2 per cent to 3 per cent of Statutory Liquidity Ratio (SLR) with immediate effect till June 30.

Combined, these three measures will make available a total Rs 3,74,000 crore to the country's financial system.

After cutting policy rates five times in 2019, the RBI had been on a pause since December in view of high inflation.

The measures announced come a day after the government unveiled a Rs 1.7 lakh crore package of free foodgrains and cash doles to the poor to deal with the economic impact of the unprecedented 21-day nationwide lockdown.

-Source: News Agnecy

COMMENTS


*

Name

AROUND THE GLOBE,3417,business,74,BY READERS,479,FEATURE,289,GLOBE,16,KERALA,13,Movie,327,s,1,SPECIAL STORY,394,TAMILNADU,3,TOP STORY,4138,TRAVEL,8,
ltr
item
Local Glob: EMIs put on hold, big-bang interest rate cut as RBI joins fight against coronavirus
EMIs put on hold, big-bang interest rate cut as RBI joins fight against coronavirus
https://1.bp.blogspot.com/-XMoeEVuAH4M/Xn4qXjXv8dI/AAAAAAAAqs4/wSe3QkfKn0oSt-_4v3n_zq1Vnplod8m2QCLcBGAsYHQ/s320/emi.png
https://1.bp.blogspot.com/-XMoeEVuAH4M/Xn4qXjXv8dI/AAAAAAAAqs4/wSe3QkfKn0oSt-_4v3n_zq1Vnplod8m2QCLcBGAsYHQ/s72-c/emi.png
Local Glob
http://www.localglob.com/2020/03/emis-put-on-hold-big-bang-interest-rate.html
http://www.localglob.com/
http://www.localglob.com/
http://www.localglob.com/2020/03/emis-put-on-hold-big-bang-interest-rate.html
true
8255692317570297677
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy