RBI extends moratorium on loan repayments by 3 more months

Moratorium extended from June 1 to August 31 in view of COVID-19

RBI-protests-PMC-guards-PTI [File] Police stand guard outside an RBI office in Mumbai | PTI

As COVID-induced lockdown continues to batter India's economy, the Reserve Bank of India on Friday has announced moratorium extension on loan repayments by three more months. The moratorium on loan repayments, initially announced from March 1 to May 31, has now been extended from June 1 to August 31. 

After announcing repo and reverse repo rate cuts of 40 basis points each, RBI Governor Shaktikanta Das on Friday announced further measures to improve liquidity in the economy. Loans will become cheaper after the repo rate cut.

The central bank has decided to roll over Rs 15,000-crore refinance facility for SIDBI for 90 days. It will extend Rs 15,000-crore line of credit to EXIM Bank, governor Das said. 

Further, the group exposure limit for lenders to corporates has been raised to 30 per cent from the current 25 per cent. In addition, RBI has also increased the export credit period to 15 months from 1 year.

"A combination of fiscal, monetary and administrative actions will create conditions for revival of the economy in the second half of the current financial year. Monetary policy transmission has continued to improve," the RBI governor said announcing the various measures. 







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