Extension of loan moratorium by 3 more months to August 31: RBI Governor

Mangalore Today News Network

New Delhi, May 22, 2020: Reserve Bank of India (RBI) Governor Shaktikanta Das addressed a press conference announcing measures to ease the financial stress caused by the COVID-19 pandemic.

This is his third press conference (the other two being on March 27 and April 17). The RBI reduced the repo rate - by 40 basis points from 4.4 percent to 4 percent while the reverse repo gets adjusted to 3.35% from 3.75%, Zee reported.

 

Das says: In view of the extension of the lockdown and continuing disruption on account of COVID-19, these measures are being further extended by another 3 months from June 1 to August 31

RBI announces extension of loan moratorium by 3 more months to August 31 (From June 1 till August 31)

RBI has decided to roll over the facility of Rs 15,000 crore for another 90 days in SIDBI

India’s foreign exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15th May, foreign exchange reserves stand at USD 487 billion

Amidst this encircling gloom agriculture and allied activities have, however, provided a beacon of hope on the back of an increase of 3.7% in food grain production to a new record

Measures announced today can be divided into 4 categories -- to improve functioning of markets, to support exports and imports, to ease financial stress by giving relief on debt servicing and better access to working capital&to ease financial constraints faced by state govts

GDP growth in FY’21 expected to remain in the negative territory. Expect some pick-up in growth in H2

MPC believes that headline inflation should remain firm in the 1st half of 2020 and should ease in the second half of 2020

Exports have suffered their worst slump in the last 30 years

Food inflation has increased to 8.6% in April 2020

Industrial production shrank by 17% in March

Services PMI plunged to an all-time low in April

RBI is maintaining accommodative stance till growth revives

Value of global trade can contract by 13-32% this year

Global services PMI recorded the steepest decline in history

RBI MPC voted 5-1 in favour of 40 bps repo rate cut to 4%

Reverse Repo gets adjusted to 3.35% from 3.75%

RBI Governor Shaktikanta Das announces repo rate cut of 40 bps i.e, from 4.4 percent to 4 percent

COVID-19 Pandemic has crippled the global economy. RBI Governor says we must keep faith in India’s resilience