Published 11:22 IST, March 27th 2020
FM Sitharaman gives first response as RBI issues 3-month EMI moratorium, slashes key rate
Finance Minister Nirmala Sitharaman opined that the measures announced by the Reserve Bank of India gave a much-desired relief following RBI's announcement
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Finance Minister Nirmala Sitharaman opined that the measures announced by the Reserve Bank of India (RBI) gave a much-desired relief following the media address by RBI governor Shaktikanta Das. Talking to the media via a video conference, the RBI governor announced a series of measures including a reduction in the 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 announcement and said that the moratorium on EMIs and interest on working capital provided a deep sense of relief to the people. In addition to this, FM Nirmala Sitharaman hoped that the slashed interest rate gets a quick transmission and welcomed the RBI Governor's statement on India's economy being sound & stronger than the aftermath of the 2008-09 financial crisis.
FM Nirmala Sitharaman's first reaction to RBI's announcement
Appreciate @RBI @DasShaktikanta’s reassuring words on financial stability. The 3 month moratorium on payments of term loan instalments (EMI) & interest on working capital give much-desired relief. Slashed interest rate needs quick transmission. #IndiaFightsCoronavirus
— Nirmala Sitharaman (@nsitharaman) March 27, 2020
Also welcome @RBI governor @DasShaktikanta’s statement: “The macro economic fundamentals of the Indian economy are sound, and in fact stronger than what they were in the aftermath of the global financial crisis of 2008-09.” And his timely reminder to #StayCleanStaySafeGoDigital.
— Nirmala Sitharaman (@nsitharaman) March 27, 2020
Measures also announced to ensure liquidity
In a massive decision, the Reserve Bank of India has announced 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. The moratorium will not result in asset classification downgrade and will have no adverse impact on credit history of beneficiaries. This is a part of the Central Bank's measures to counter the Coronavirus lockdown, which had started off with the RBI governor announcing massive slash in the key repo rate to 4.4%, to revive economic growth. Measures have also been announced to ensure liquidity.
11:22 IST, March 27th 2020