March 27, 2020
BFSI

Coronavirus Outbreak: RBI cuts Interest Rate by 75 bps, EMIs on hold

A day after the Union finance minister Nirmala Sitharaman announced a Rs 1.7 lakh crore package in a bid to combat the impact of the 21-day coronavirus lockdown, the Reserve Bank of India (RBI) Governor Shaktikanta Das today reduced the interest rates by 75 basis points to 4.4 percent. He also announced several measures to instil Rs 3.74 lakh crore liquidity into the system. Thomas John Muthoot, Chairman and Managing Director, Muthoot Pappachan Group.“The health emergency and the impact of the same on the economy, particularly on the common man, is unprecedented. At the same time, our economy has been facing a downturn for some time now.  In spite of a not-so-robust fiscal situation, the measures announced by the FM yesterday and by the RBI today, are indeed bold and explicitly reflect Govt’s resolve to face the health & the economic crises head-on, with special focus on the distress of the common man. Large repo rate cut of 75 basis points announced by RBI, with accommodative stance, will certainly help in boosting the lending scenario ultimately empowering the common man. The moratorium for banks and NBFCs on term loan instalments and interest on working capital for up to 3 months will also provide some relief as many individuals, especially self-employed ones, are facing income loss due to the ongoing lockdown.