coronavirus

economy

Here's how the lockdown has impacted the poor in Mumbai 02:28

moratorium

RBI

private banks

Appreciate @RBI @DasShaktikanta’s reassuring words on financial stability. The 3 month moratorium on payments of te… https://t.co/2svEwbQ1AT — Nirmala Sitharaman (@nsitharaman) 1585286837000

Amid the threat of theover the, the Reserve Bank of India Governor Shaktikanta Das on Friday announced a reduction in the repo and reverse repo rate."The repo rate has been reduced by 75 basis points to 4.4 per cent. The reserve repo rate has been reduced by 90 basis points to 4 per cent," Das said addressing the media.Das said the outlook is now heavily contingent upon the intensity, spread and duration of the pandemic. "There is a rising probability that large parts of the world will slip into recession." Meanwhile, Das also announced a slew of measures to give some relief to those who have taken loans.These decisions come a day after Union Finance Minister Nirmala Sitharaman announced a special Rs 1.7 crore relief package to help the poor and migrant workers amid a 21-day nationwide lockdown to mitigate the impact of the coronavirus pandemic.The Governor said that the Reserve Bank has permitted all lending institutions to allow a 3-monthon payment of installments on term loans."Moratorium on term loan, deferring of interest on working capital will not classify as default, will not impact credit history of the borrower," thesaid.The governor also said that RBI will undertake a repo operation of up to Rs 1 lakh crore to infuse liquidity into the market. "Cash reserve ratio of all banks reduced by 100 bps to 3 per cent with effect from March 28 for 1 year; to release Rs 1.37 lakh crore liquidity."Stating that the RBI is at work, the Governor said that the global slowdown can deepen with adverse implications for India.Das also assured that the banking system in India safe. "(Your) deposits are safe in, the public should not resort to panic withdrawal."