In the wake of the recent lockdown across sectors due to coronavirus pandemic that has impacted earnings of people severely, RBI has announced several crucial measures, including special lines of liquidity, loan moratorium, and easier asset quality norms. Hours after the Economic Task Force, headed by Finance Minister Nirmala Sitharaman released Rs 1.7 lakh-crore scheme, the Indian Central Bank slashed down Repo rate, Reverse Repo rate and Cash Reverse ratio to give strength to the economy.
In an official statement issued by RBI Governor Shaktikanta Das, the Reserve Bank of India on Friday asked all lending institutions to allow a three-month moratorium on EMI payments in order to infuse liquidity into the system. “Indian banking system is safe and sound. In recent past #COVID19 related volatility in the stock market has impacted share prices of banks as well resulting in some panic withdrawal of deposits from a few private sector banks,” said RBI Governor Shaktikanta Das addressing the nation.
In the line of the issued statement, no EMI would be deducted from the account of anyone who has a loan outstanding for the next three months. “Without any hit on credit score, EMIs will resume after the moratorium period gets over which will be applicable to corporate loans, home loans and car loans. Personal loans will also qualify for this,” said an analyst. While further clarity is awaited as banks are yet to offer a statement on the fresh relief measures, this will indeed come as a relief to the common man with the economy at doldrums affecting every possible thing afflicted with the common man.