'Bold & timely': NITI Aayog hails RBI's decision of 3-month Moratorium, slashed repo rate

Hailing the decision of the Reserve Bank Of India to give a 3-month moratorium to all banks on installments of loans, NITI Aayog CEO Amitabh Kant called it progressive. Taking to Twitter, Kant on Friday after RBI's media briefing said that RBI chairman Shaktikanta Das has provided much-needed relief to working capital with this announcement. Referring to the coronavirus outbreak in the nation, he called the decision as a "timely measure". On the decision of slashing the repo rate by 75 points, he said that it is a big and bold step. 

WATCH the most important RBI briefing: From Repo rate slash to 3-month EMI moratorium

RBI's announcement

The Reserve Bank of India announced on Friday that banks are permitted to allow a 3-month moratorium on payment of installments 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. The moratorium will not result in asset classification downgrade and will have no adverse impact on the credit history of beneficiaries.

The Reserve Bank of India governor Shaktikanta Das also announced a 'sizeable reduction' in the policy repo rate of the country, slashing it by 75 base points to 4.4%.

MASSIVE: RBI announces 3-month moratorium on EMI installments of all term loans