Devendra Fadnavis lauds RBI's 3-month EMI moratorium move, says all borrowers will benefit

On Friday, former Maharashtra Chief Minister Devendra Fadnavis hailed the RBI’s decision to allow the payment of the Equated Monthly Installment (EMI) after three months. He contended that it was very difficult for people to pay the EMI on March 31 due to the novel coronavirus crisis. Moreover, he stated that the accounts of the people would not become NPA. Fadnavis added that this decision was binding on all types of financial institutions. According to him, the RBI Governor’s announcement had provided a lot of relief to all people who had taken a loan.  

Devendra Fadnavis remarked, “I want to thank the PM and the RBI Governor for the important decisions taken by RBI today. Especially the people who have taken a loan whether it is for the house, car, business, trade had to pay the installment of the loan on March 31. But it was very difficult for people to pay the EMI because of coronavirus. The RBI has decided that the EMI can be paid after three months.” 

He elaborated, “I think that the accounts of the people will not become NPA, people will not be branded as defaulters. Most importantly, this decision is applicable to banks, commercial banks, district scheduled co-operative banks, co-operative societies, NBFCs and other types of financial institutions. I feel that all people in the country who have taken loans will get a lot of relief.” 

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RBI takes major decisions in the wake of the COVID-19 crisis

Earlier in the day, RBI Governor Shaktikanta Das announced that all commercial banks, co-operative banks, all financial institutions, and NBFCs were permitted to allow a three-month moratorium on payment of EMI on all term loans outstanding on March 1, 2020. Pursuant to this, the banks can adjust their repayment schedule and other due dates by three months. The important aspect is that the moratorium will have no adverse impact on the credit history of the beneficiary. Moreover, the repo rate has been cut by 75 basis points to 4.4% and the reverse repo rate has been reduced by 90 basis points to 4%. According to the RBI Governor, the reduction in the policy repo rate was done to “revive growth and mitigate the impact of COVID-19 and ensure financial stability".

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