New Delhi: The Reserve Bank of India has announced a slew of measures to ameliorate the hardship of the people in the face of the economic stalemate arising out of the 21-day lockdown. Also Read - 'Giant Steps to Safeguard Economy,' Says PM Modi on RBI's Relief Measures For Finance Sector
Here’s how you will benefit from the measures Also Read - RBI Announces Major Relief For EMI-Payers, Don't Panic, Situation Better Than 2008, Says Chief | 10 Points
1. Repo rate has been reduced. Repo rate is the interest rate in which the central banks offer other banks loans. So, banks can take loans from the RBI at a lower rate. Mostly the banks pass this benefit to customers by lowering the rate of the interest. Also Read - Confirmed Coronavirus Cases in India Near 800; Italy Records Almost 1,000 COVID-19 Deaths in One-Day | Top Developments
2. RBI has reduced the daily requirement of CRR balance from 90 per cent to 80 per cent. This is the amount of the funds that the banks are bound to keep with the RBI. When this is reduced, the banks have more money in their hands.
3. If you are an EMI-payer, then your EMI won’t be deducted from your account automatically for the next three months as the RBI has allowed all lending institutions to permit three-month moratorium on all payment of installments.
4. There is enough money in the system. The Reserve Bank has injected liquidity of Rs 2.8 lakh crore through various instruments, equivalent to 1.4 per cent of our GDP. Together with the measures announced today, RBI’s liquidity injection works out to about 3.2 per cent of GDP.