Reserve Bank of India (RBI) Governor Shaktikanta Das, held a press conference and announced a major relief to the customers. The central bank has cut the repo rate, which will reduce your loan interest rates. Also, term loan moratorium has been extended till 31st August. With three months further, the facility of moratorium has now gone up to six months. That is, if you do not pay your EMI for these six months, your loan will not be considered in default or NPA category.
- RBI Governor, Shaktikanta Das, said that the MPC meeting was scheduled from June 3 to 5. But it has already been taken up. It was made during 20th to 22nd May.
- Most of the members in the meeting were in favour of lowering the repo rate. The repo rate has been cut by 40 basis points and has come down from 4.40 per cent to four per cent. 5 out of 6 members of the MPC voted in favour of lowering the repo rate.
The reverse repo rate has also been reduced from 3.75 per cent to 3.35 per cent. He said, inflation will remain at a high altitude in this half. However, it may soften in the next half.
- The lockdown has brought down a steep decline in economic activity. Most of the red zones were in six major industrial states. They have a share of 60 per cent in the country’s economy.
- The production of capital goods declined by 36 per cent in March.
- The production of consumer durables declined by 33 per cent.
- Industrial production declined by 17 per cent in March.
- Kharif sowing has increased by 44 per cent.
- Food inflation rose to 8.6 per cent in April. The price rise of pulses will be a matter of particular concern in the next months.
- The corona has affected global growth. The global economy is heading for recession, with the global economy declining since March.
- India’s foreign exchange reserves have registered a growth of $9.2 billion in 2020-21. India’s foreign exchange reserves are now 487 billion dollars.
- Exim Bank will be given a credit line of Rs.15,000 crore.
- SIDBI allowed to use the amount given for further three months.
- RBI has extended the term loan moratorium till 31st August. Earlier it was till 31st May. With three months further, the facility of moratorium has now gone up to six months. That is, if you do not pay your EMI for these six months, your loan will not be considered in default or NPA category.