FM Sitharaman gives first response as RBI issues 3-month EMI moratorium, slashes key rate

Finance Minister Nirmala Sitharaman opined that the measures announced by the Reserve Bank of India (RBI) gave a much-desired relief following the media address by RBI governor Shaktikanta Das. Talking to the media via a video conference, the RBI governor announced a series of measures including a reduction in the repo rate, reverse repo rate, issuing a moratorium on EMI installments and more measures.

Finance Minister Nirmala Sitharaman took to Twitter to react to RBI's announcement and said that the moratorium on EMIs and interest on working capital provided a deep sense of relief to the people. In addition to this, FM Nirmala Sitharaman hoped that the slashed interest rate gets a quick transmission and welcomed the RBI Governor's statement on India's economy being sound & stronger than the aftermath of the 2008-09 financial crisis. 

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FM Nirmala Sitharaman's first reaction to RBI's announcement

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Measures also announced to ensure liquidity

In a massive decision, the Reserve Bank of India has announced that banks are permitted to allow a 3-month moratorium on payment of instalments of all term loans outstanding on March 1, 2020. This decision applies to all regional, rural banks, co-operative banks, NBFCs including Housing Finance Companies. The moratorium will not result in asset classification downgrade and will have no adverse impact on credit history of beneficiaries. This is a part of the Central Bank's measures to counter the Coronavirus lockdown, which had started off with the RBI governor announcing massive slash in the key repo rate to 4.4%, to revive economic growth. Measures have also been announced to ensure liquidity.

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