New Delhi: Days after finance minister Nirmala Sitharaman announced a Rs 20 lakh crore package for ‘Aatmanirbhar Bharat’, the Reserve Bank of India governor Shaktikanta Das will address a press meeting on Friday 10 AM, triggering speculations that the central bank could extend a moratorium on payment of all term loans. Also Read - 'Our First Priority Was to Save Lives', Nirmala Sitharaman on Four Rounds of Lockdown
In March, during the first phase of lockdown, the RBI had allowed a three-month moratorium on all term loans due between March 1, 2020, and May 31, 2020. It is being speculated that with the extension of the lockdown till May 31, the moratorium will be extended for a period of another three months. Also Read - How to Get Instant PAN or e-PAN Via Aadhaar Card - Follow These Steps
Finance minister Nirmala Sitharaman is scheduled to hold a review meeting with the CEOs of public sector banks today to discuss credit offtake. Also Read - Facility of Instant PAN Through Aadhaar Based E-KYC Launched
The meeting was earlier scheduled on 11 May, but due to the stimulus package announcements, it was deferred, they added. The meeting, to be held via video-conferencing, will also take stock of interest rate transmission to borrowers by banks and progress on the moratorium on loan repayments, the sources said.
The RBI had on 27 March slashed the benchmark interest rate by a massive 75 basis points and also announced a three-month moratorium to be given by banks to provide relief to borrowers whose income has been hit due to the lockdown.
Besides, CEOs of public sector financial institutions will also be present at the meeting.
The meeting assumes significance in light of the over Rs 20 lakh crore comprehensive economic package announced for the economy reeling under the COVID-19 crisis.
The Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through the Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector hit hard by the coronavirus crisis.
Earlier this month, RBI Governor Shaktikanta Das held a meeting with heads of both public and private sector banks to take stock of the economic situation and review the implementation of various measures announced by the central bank.
The deployment of excessive funds by banks under the reverse repo route may also come up for discussion on Friday, sources said.
Besides, progress under the targeted long-term repo operations (TLTRO) for the NBFC sector and microfinance institutions (MFIs), and sanctions under the COVID-19 emergency credit line will also be reviewed.