RBI extends loan repayment time by three more months

In order to provide more financial relief in these trying times with the COVID-19 outbreak, the Reserve Bank of India on Friday extended the time period on loan repayments by three more months. This moratorium means that loan repayments have been extended till August 31.

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In a press conference, Shaktikanta Das, RBI Governor, announced the decision post a meeting conducted by the Monetary Policy Committee. In this off-cycle meeting, the committee reached a decision to scale down the repo rate by 40 basis points. The governor went on to say that the RBI will be doling out a Rs. 15,000 crore refinance facility for SIDBI for a period of 90 days. Along with that, RBI has also adjusted the export credit period, extending it to 15 months from the previously active one year.

In the press conference, Das relayed that the effect of the disruption caused by COVID-19 has been beyond anyone’s expectations. He said, “However, a ray of hope comes from the forecast of normal monsoons.”

As per the Governor, there has been improvement in the monetary policy transmission. He further added that the RBI is working towards ensuring that the body is well prepared to take on the uncertain future and that the stability of the financial markets is preserved efficiently.

“We are trying to be proactive. The central bank will take whatever measures are needed to be taken due to the COVID pandemic,” he said.

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