The Reserve Bank of India Governor Shaktikanta Das will address the media at 10 am today amid buzz that the central bank may extend a moratorium on payment of all term loans. "Watch out for RBI Governor live address at 10:00 am today (May 22, 2020)," RBI said in a tweet.
In March, RBI had allowed a three-month moratorium on payment of all term loans due between March 1, 2020 and May 31, 2020.
With the government extending the nationwide lockdown up to May 31, the Reserve Bank of India (RBI) may extend the moratorium on repayment of loans for three more months, said a recent SBI research report.
"With the lockdown now extended up to May 31, we expect RBI to extend the moratorium by three months more," SBI's research report- Ecowrap said.
The government recently announced a ₹20 lakh crore economic stimulus package to deal with the fallout of COVID-19 crisis that included ₹8 lakh crore of liquidity measures announced by the Reserve Bank since March.
Last month, the RBI had unexpectedly cut its key deposit rate to discourage banks from parking idle funds with it and spur lending instead, to revive a flagging economy amid the coronavirus lockdown. The RBI cut its reverse repo rate by 25 basis points (bps) to 3.75%. The rate had already been cut by 90 bps on March 27.
The central bank kept its benchmark lending or repo rate unchanged at 4.40% after a cut of 75 bps in March. The RBI chief said that the central bank would monitor the situation and take further measures as and when required.
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Last month, the RBI had also announced another round of targeted long-term repo operations and had also opened a refinance facility for the National Bank of Agriculture and Rural Development, the Small Industries Development Bank of India and National Housing Bank to meet the long-term funding needs of various rural and small sectors.
(With Agency Inputs)