Chidambaram welcomes RBI's Repo rate cut but calls EMI moratorium ambiguous & half-hearted

Senior Congress leer P Chidambaram called Reserve Bank of India's direction on deferment of EMIs as ambiguous and half-hearted and called for dates to be automatically deferred. Reacting after RBI goverr Shaktikanta Das anunced a series of measures to ease ecomy amid battle with coronavirus, P Chidambaram welcomed RBI's decision to cut repo rate and for introducing measures to provide more liquidity. Furr, senior Congress leer said that he h asked for due dates falling before June 30 to be deferred and that borrowers would be disappointed as y would have to be dependent on bank concerned. 

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Chidambaram's reaction to RBI's measures

WATCH Most Important RBI Briefing: From Repo Rate Slash To 3-month EMI Moratorium

Here's a summary of RBI's anuncements:

Key rates slashed:  Goverr anunced a reduction in repo rate and reverse repo rate. " repo rate has been reduced by 75 basis points to 4.4 %. reserve repo rate has been reduced by 90 basis points to 4%," Das said. decision for "a sizeable reduction" in policy repo rate, according to RBI Goverr was taken to "revive growth and mitigate impact of COVID-19 and ensure financial stability." Repo rate cut - which is rate of interest at which banks borrow from RBI - will ensure banks have more access to funds, while Reverse-Repo rate cut will make it less attractive for banks to park ir funds with central bank.

projections given due to Coronavirus-induced volatility: Inflation & growth projections would be highly subject to volatility - hence, projection given, said RBI Goverr, mitting that 5.0% GDP growth forecast was under threat.

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Indian banking system "safe and sound": Goverr also said that Indian banking system is "safe and sound" and depositors should t resort to panic withdrawal of ir deposits. He urged those with deposits in private banks to t indulge in panic withdrawal. Measures were also anunced and listed to shore up liquidity. 

This comes after minutes after influential Moody's Investors Service slashed India's 2020 GDP growth projection from its earlier forecast of 5.3% to 2.5% amid global Coronavirus pandemic. Indian government h earlier projected GDP growth at 5% in 2019-20 as compared to 6.1% in 2018-19. Q3 h witnessed a 4.7% growth. India has anunced a Rs 1.7 lakh crore Coronavirus relief pack, split between assuring food security and Direct Benefit Transfer cash-transfer as country observes a 21-day lockdown to combat COVID-19, of which over 700 infections have been confirmed thus far.

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