RBI cuts interest rates, extends loan moratorium by another 3 months

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In his third such address since the coronavirus-induced lockdown began on March 25, Reserve Bank of India (RBI) Governor Shaktikanta Das today cut the repo rate by 40 basis points to 4% and also extended the moratorium on all term loans by another 3 months. After the lockdown began, Das had slashed the benchmark interest rate (repo rate) by a massive 75 basis points and also announced a three-month moratorium to be given by banks to provide relief to borrowers whose income has been hit due to the lockdown. The loan moratorium has now been extended till August 31 for 6 months.

Finance Minister Nirmala Sitharaman, who recently announced the 20 lakh crore economic package in five tranches, will also hold a review meeting with CEOs of public sector banks (PSBs) today to discuss various issues, including loan disbursement, as part of efforts to revive the economy reeling under the COVID-19 impact.

Read More at: https://www.livemint.com/industry/banking/rbi-governor-shaktikanta-das-press-conference-live-updates-rate-cut-extension-of-moratorium-on-loans-11590119745407.html