RBI allows 3-month moratorium on EMIs of all term loans

Hindustan Times | Mar 27, 2020 at 6:27 AM
  • The Reserve Bank of India (RBI) on Friday allowed banks, non-bank financial institutions (NBFCs), including housing finance companies, and other financial institutions to allow a three-month moratorium on payment of instalments on term loans amid the disruption caused the coronavirus outbreak.
  • RBI has also allowed banks to restructure the working capital cycle for companies without worrying that these will have to be classified as non-performing assets (NPAs) during the 21-day countrywide lockdown.
  • RBI governor Das also slashed the key lending repo rate by 75 basis points to 4.4% and reverse repo rate by 90 basis points to 4% to revive economic growth amid the spread of the deadly coronavirus pandemic.