FM Sitharaman gives first response as RBI issues 3-month EMI moratorium, slashes key rate

Finance Minister Nirmala Sitharaman opined that measures anunced by Reserve Bank of India (RBI) gave a much-desired relief following media address by RBI goverr Shaktikanta Das. Talking to media via a video conference, RBI goverr anunced a series of measures including a reduction in repo rate, reverse repo rate, issuing a moratorium on EMI installments and more measures.

Finance Minister Nirmala Sitharaman took to Twitter to react to RBI's anuncement and said that moratorium on EMIs and interest on working capital provided a deep sense of relief to people. In addition to this, FM Nirmala Sitharaman hoped that slashed interest rate gets a quick transmission and welcomed RBI Goverr's statement on India's ecomy being sound & stronger than aftermath of 2008-09 financial crisis. 

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FM Nirmala Sitharaman's first reaction to RBI's anuncement

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Measures also anunced to ensure liquidity

In a massive decision, Reserve Bank of India has anunced that banks are permitted to allow a 3-month moratorium on payment of instalments of all term loans outstanding on March 1, 2020. This decision applies to all regional, rural banks, co-operative banks, NBFCs including Housing Finance Companies. moratorium will t result in asset classification downgrade and will have  adverse impact on credit history of beneficiaries. This is a part of Central Bank's measures to counter Coronavirus lockdown, which had started off with RBI goverr anuncing massive slash in key repo rate to 4.4%, to revive ecomic growth. Measures have also been anunced to ensure liquidity.

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