RBI further extends moratorium on loans by three months



Quick Summary
The Reserve Bank of India (RBI) has announced a three-month extension to the moratorium on loan repayments, now lasting until August 2020. This decision comes as the RBI governor forecasts India's GDP to remain in negative territory for 2020-21, with a potential recovery in the latter half of the fiscal year. Alongside the moratorium extension, the RBI also reduced repo rates by 40 basis points to 4%.

The RBI governor held a press conference today that is on the 22nd of May 2020. The governor in the press conference announced that India's GDP is expected to remain in the negative territory for 2020-21. However, some pick up might be expected in the second half.

Following major announcements were made by the RBI Governor:

1. The moratorium on loan repayments has been further extended by three months that is till August 2020.

2. The Repo rates have reduced by 40 bps from 4.4% to 4%

3. The reverse repo rate to be maintained at 3.35%

4. The Export Credit Period has been extended to 15 months from 1 year

Do you think a further extension on the moratorium of loans will prove to be helpful for the borrowers?

FAQ :

The moratorium on loan repayments has been extended by three months, now lasting until August 2020.

The article does not specify the previous end date, only that it has been extended until August 2020.

The repo rate has been reduced by 40 basis points from 4.4% to 4%.

The reverse repo rate is maintained at 3.35%.

The RBI governor expects India's GDP to remain in negative territory for 2020-21, with some pick-up expected in the second half.

Yes, the Export Credit Period has been extended to 15 months from 1 year.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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