Articles

RBI Reduces Repo Rate by 75 Basis Points to 4.4%

by Rokdabazaar .com Loan, Cards, Investments
reporate

RBI governor Shaktikanta Das on Friday 27th March 2020 announced a cut on repo rate by 75 basis points. He said this is often a unprecedented condition and these steps are taken in sight of the Covid-19 pandemic to preserve the economic stability & to spice up liquidity during a stimulus worth 3.2% of GDP.

HIGHLIGHTS: WHAT RBI Governor Announced

  • Cut in repo rate by 75 basis points, which is bringing it from 5.15% to 4.4%, which is that the lowest ever.
  • Reverse repo rate reduced by 90 basis points, bringing it to 4%.
  • The biggest one: Lending institutions can allow a three-month moratorium on EMI payments. this suggests now debtors are legally authorized to postpone their EMI payment for 3 months.
  • Deferment on loan and interest repayments won’t be considered as defaulting and hence won’t impact the borrower’s CIBIL.
  • Liquidity worth 3.74 lakh crore to be injected by RMI into the system.
  • The RBI governor assured depositors that their money is safe privately banks, and therefore the public shouldn’t start panic withdrawals.
  • Mr. Das added also said that the bank stocks crash shouldn’t be a matter of worry for the depositors.
  • The Cash Reserve Ratio (CRR) of all banks has been reduced by 100 basis points which are 3%.
TOI
Source : TOI

Impact of the rate cut on borrowers:

  • This unexpected rate cut is within the great favor of the borrowers. because the RBI said of these steps are taken to counter the economic impact of the coronavirus pandemic.
  • The rate cut announced by the RBI governor is that the lowest ever.
  • This will likely reduce the EMI for your ongoing loans.
  • Opting for a replacement loan will become cheaper.
  • The bank is probably going to supply more loans.

All these cuts on rates are in view of the Covid-19 crisis and in order to mitigate its impact on the economy.

On 26th March our honorable minister of finance has also made several announcements to fight the Covid-19 pandemic. the main announcements made by her included-

  • ₹1.7 lakh crore relief package for the poor.
  • ₹50, 00,000 insurance protect the soldiers you’re fighting with this pandemic on the front. (for Doctors, nurses, Asha, Pharmacists, etc.)
  • Ujjwala beneficiaries get free LPG cylinders for 3 months.
  • EPFO to permit 75% non-refundable advance or 3 months of salary whichever is lower.
  • Government to pay EPF contribution, for both the employer and employee for subsequent 3 months for all those companies with but 100 employees where 90% earn but ₹15,000 per month.

Sponsor Ads


About Rokdabazaar .com Advanced   Loan, Cards, Investments

16 connections, 0 recommendations, 112 honor points.
Joined APSense since, September 18th, 2019, From Gurugram, India.

Created on Mar 31st 2020 00:10. Viewed 157 times.

Comments

No comment, be the first to comment.
Please sign in before you comment.