customersuccess@taxmantra.com
+91 9230033070 
Toll Free: 
Contact Us
RBI Governor’s 3rd Press Meeting during Covid-19 Pandemic in Last 2 months has covered variety of topics ranging from extension of EMI moratorium to reduction of repo rate and further in GDP Growth forecast.
Key points addressed are as below :
- RBI has extended EMI moratorium by another 3 months to provide additional liquidity. The loan moratorium will hence be extended till 31 August 2020. This makes EMI moratorium a six month moratorium.
- An improvement in passing on a lower rate to borrowers has been noticed across various business segments. To encourage this further RBI has decided to cut repo rates by 40 basis points. The repo rates are now revised from 4.40% to 4% and reverse repo rate by 40 basis points to 3.35 per cent. Inflation too may remain firm in the first half but will ease out in second half.
- Lending Institutions permitted to restore the margins for working capital by 31st March 2021. The RBI Governor announced refinancing support to the tune of Rs 50,000 crore through all India financial institutions such as Nabard, SIDBI and NHB.
-
The Governor informed volume of world trade can shrink by 13-32% this year. To manage importer’s operative cycle, outward remittances against normal imports into India, reduced to 6 months from 12 months. Further, RBI has allocated Rs 15,000 crores to EXIM banks to avail US dollar swap facility. This will have a rollover facility to up to one year.
-
The RBI Governor announced that six states contributing to manufacturing are in red. Power and fuel consumption has also plunged during the COVID-19 pandemic. The governor informed that there is a double whammy in this wherein there is a loss in production on one side and contraction in demand on the other hand. In the light of this, the RBI announced that it estimates that the GDP growth is estimated to be in negative territory in FY 2020-2021.
____________________________________________We’re listening:
Reach us at https://taxmantra.com/business-maintenance/ or Call/WA us at +91-9230033070 for any support/query/feedback.