The lockdown continues in the country due to the Coronavirus pandemic and the government is continuously making efforts to boost the country’s economy. Under this, the Reserve Bank has also opened the doors of relief.
|(Photo: RBI Twitter)|
Shaktikanta Das, the Governor of Reserve Bank of India, addressed a press conference on Friday 27th March at 10 am. The RBI Governer’s addresses comes a day after the finance ministry announced a coronavirus relief package of worth Rs 1.7 lakh crore.
RBI Governor Shaktikanta Das announced a reduction in the repo rate by 75 basis points to 4.4 per cent while reverse repo-rate reduced by 90 basis points to 4%. The decisions were taken during the RBI advances monetary policy committee meeting held between 25-27 March, said Shaktikanta Das.
RBI Governor Shaktikanta Das suggested that all financial institutions, including banks, postpone EMIs on all types of loans for three months. Here, let us clear one thing that RBI has not given order, just advised. This means that now banks have to make decisions whether they are giving a discount on EMI to the common people or not.
This is the historic decision by RBI to cut repo rate and biggest reduction in history.
All commercial banks are being given a 3-month exemption to pay interest and loans. With this decision, cash of Rs 3.74 lakh crore will come in the system, says RBI Governor.
RBI Governor said that the banking system is safe and strong,the public should not resort to panic withdrawal.