Shaktikanta Das, the governor of the Reserve Bank of India (RBI), on Friday, extended the moratorium on loan repayments by three more months in view of coronavirus (COVID-19).
Addressing his third presser, the central bank governor also announced a 40 basis points (bps) cut to both the repo and reverse repo rates. the repo rate stands reduced at 4 per cent, while the reverse repo rate now stands at 3.35 per cent, Das said during his address.
Moratorium on term loans available till May 31, now extended by another three months till August 2020 @IndianExpress
According to sources, several banks, including Axis Bank, and NBFCs had demanded a loan restructuring scheme as moratorium alone is not sufficient to come out of the Covid crisis.
As part of its contingency plan in the wake of the coronavirus pandemic, the RBI, on March 27, had announced a three-month moratorium (March 1 to May 31) on loan and card repayments and slashed its main policy rate — Repo rate by 75 basis points and cash reserve ratio (CRR) of banks by 100 basis points to stabilize the financial markets and reduce the pain on borrowers hit by Covid-19 pandemic.