RBI Press Meet Live Today: Reserve Bank of India Governor Shaktikanta Das on Friday announced a bunch of measures the central bank is taking to mitigate the economic hardships lying ahead in view of the COVID-19 lockdown. Also Read - RBI Slaps Penalties on Bank of India, Karnataka Bank For Non-compliance With Certain Norms
For exporters, EMI payers, banks, here are the major takeaways: Also Read - Coronavirus Recession: India's GDP Likely to Contract 5% in FY21: Crisil
1. RBI extends moratorium on loan repayments by three more months in view of COVID-19. Also Read - Malls Lose Rs 90,000 Crore in 2 Months, SCAI Seeks Adequate Relief
2. RBI to roll over Rs 15,000-cr refinance facility for SIDBI for 90 days.
3. Repo Rate: Six-member monetary policy committee voted 5:1 in favour of 40 bps cut in interest rate
4. RBI cuts reverse repo rate to 3.35%; to maintain accommodative stance.
5. RBI increases export credit period to 15 months from 1 year.
6. RBI to extend Rs 15,000-cr line of credit to EXIM Bank.
7. Group exposure limit for lenders to corporates raised to 30% from 25%.
What about accumulated interests?
The accumulated interest can be paid any time before the financial year ends. In order to ameliorate the difficulties faced by borrowers in repaying the accumulated interest for the deferment period on working capital facilities in one shot, lending institutions are permitted to convert the accumulated interest on working capital facilities over the deferment period (up to August 31, 2020) into a funded interest term loan which shall be repayable not later than the end of the current financial year.