new Delhi
Giving yet another booster to the coronavirus battered economy, the central bank RBI has announced further reductions in the repo rate. The repo rate has been cut by 40 bps, after which the new rate has been reduced to 4% and the EMI Moratorium has been extended three months further. This is the third time since Corona's lockdown that the RBI announced reliefs in view of the moaning economy. Firstly on 27 March and then on 17 April, the RBI announced a variety of reliefs, in which big announcements like EMI Moratorium were made.
What is the repo rate? : When we need money and our bank account is empty, then we take a loan from the bank. In return, we pay interest to the bank. Similarly, the bank also needs a lot of money for its needs or for its day-to-day operations. Banks borrow from the Reserve Bank of India for this. The rate of interest that banks pay to the Reserve Bank on this loan is called repo rate.
Impact of the repo rate on you: When the bank gets a loan from the Reserve Bank at a lower rate of interest, then their fund raising cost will be reduced. Because of this, they can give cheaper loans to their customers. This means that the interest rates on your home, car or personal loan can be reduced if the repo rate is low.
EMI Moratorium increased for 3 months
The Moratorium, which took place on 27 March, has now been extended for 3 months. All relief given for three months has been extended for another three months. That is, Moratorium has been extended from June 1 to August 31, you have got the option to postpone the loan installment for another three months.
In addition, additional flexibility was announced to SIDBI. For 90 days term loan, further extension of 90 days ie 3 months has been given. This will provide additional support to MSME sector.
GDP will remain negative
RBI Governor Shaktikanta Das expressed concern about GDP and said that growth could remain in negative territory in FY 2020-21. He said that the biggest shock has been the private congestion. Consumer durables production declined by 33% in March 2020. Merchandise exports have reached the worst level in 30 years.
Boost import-export
The RBI made several announcements to boost import-export. Permissible period of export credit for preshipment and post shipment was increased from 1 year to 15 months. Allocation of 15000 Crore rupees to EXIM bank for US dollar swap facility.
Center gave self-sufficient India package
To deal with the damage caused to the economy due to Corona crisis and lockdown in the country, the Modi government had announced an economic package of around 20 lakh crores, which was named Self-Reliant India Package. This was announced by Prime Minister Narendra Modi in his address to the country on 12 May. After this, Finance Minister Nirmala Sitharaman had announced a detailed press conference for five consecutive days and measures taken for various sectors of the economy. In this, an arrangement of Rs 3 lakh crore was made for easy loan to MSMEs without guarantee.
Many reliefs were given on 17 April
Earlier on 17 April, the RBI announced a series of reliefs to support the economy affected by the Corona crisis and lockdown. The reverse repo rate was cut by 25 basis points, reducing it from 4 per cent to 3.75 per cent. This will not hurt banks in getting loans. The central bank announced TLTRO 2.0 to help small and medium-sized companies overcome the cash crisis. It was started with 50 thousand crore rupees. It was also said to increase it later in view of the situation. Half of the total amount was given to small and medium companies, MFIs and NBFCs under TLTRO 2.0.
Moratorium on EMI was given in March
Earlier in March also, the RBI allowed banks and financial institutions to postpone the term loan installment due to corona for three months. Due to Corona, the monetary policy review was submitted ahead of schedule. The RBI governor said that banks are being allowed to postpone EMI recovery of customers for three months in case of term loans. Banks will be allowed to keep it in the NPA account for non-repayment of loan.
Earlier, Satish Kashinath Marathe, a director of the central bank and associated with the Rashtriya Swayamsevak Sangh, questioned the Modi government's relief package. He had said that three months moratorium is not enough and softening of NPA should have been part of the relief package.
PM Modi: PM will address the meeting of Home Ministers, Home Secretaries, and DGP, and will discuss internal security
After the Diwali festival, Prime Minister Narendra Modi will address the Chintan Shivir of Home Ministers and DGPs of the states through video conferencing on Friday. The PMO said that this program
Covaxin is strong: Indian variant of Corona can also neutralize 617 Corona Variants, US epidemic expert claims
There is good news about indigenous covaxin amid Corona being dangerous. According to Dr. Anthony Fauci, America's chief medical adviser, and epidemic top expert, covaxin is also effective in
World media warns India from Taliban: Pakistan will be the biggest beneficiary of Taliban rule in Afghanistan, reminds India of Kandahar incident
The world media is expressing concern about the impact of the Taliban regime in Afghanistan on its neighboring countries. Afghanistan has seven neighboring countries – Pakistan, Iran,
Wagner Group: Russia's hired killers, who have been given the responsibility of killing the Ukrainian President, are so dangerous that Europe has also banned
Now five days have passed since Russia attacked Ukraine. Despite this, the Russian army has still not been able to block the way for Ukrainian President Volodymyr Zelensky by besieging the Ukrainian
ODI WC Final: Special preparations by Railways for the World Cup final, special train will run for the match; Know the time table
The final of the ODI World Cup 2023 is to be held between India and Australia. Players of both teams have geared up for this match. The fans have also made complete preparations and are reaching
QUAD: India did not take the name of China, the US directly targeted
At the quad meeting of four countries on Tuesday, the US openly opposed China's policies, India Japan and Australia insisted on increasing cooperation in the region without naming China.
Tablighi Jamaat case: Delhi Police will file 20 charge sheets against 83 citizens of 15 countries today
New Delhi: In the Tabligi Markaz case, Delhi Police will today (Tuesday) file 20 charge sheets against 83 citizens of about 15 countries in Delhi's Saket Court. All these chargesheets are being filed
PM Modi addressed the meeting of G-20 Foreign Ministers, said- Many countries are facing the sad consequences of failed misgovernance
Prime Minister Narendra Modi addressed the meeting of G-20 Foreign Ministers on Thursday. During this, he said, "I welcome you to India for the G20 Foreign Ministers' meeting. This indicates the need
Dead body in garbage, even patient's family is not aware of the death: SC anger over Kejriwal government
New Delhi, ANI. A hearing was held in the Supreme Court for the proper treatment of Covid-19 patients and the bodies of those who died of the disease were kept in hospitals in a dignified manner.
INC: Congress's taunt on PM Modi's promise to make India the third largest economy - this is certain, no matter which government
Congress general secretary Jairam Ramesh took a dig at Prime Minister Narendra Modi's statement that the country is "guaranteed to become the third largest economy". He said that India is set to
