“All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFC (including housing finance companies and micro-finance institutions) (“lending institutions”) are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020. Accordingly, the repayment schedule and all subsequent due dates, as also the tenor for such loans, may be shifted across the board by three months,” the RBI statement said.
It also added, “In respect of working capital facilities sanctioned in the form of cash credit/overdraft, lending institutions are being permitted to allow a deferment of three months on payment of interest in respect of all such facilities outstanding as on March 1, 2020. The accumulated interest for the period will be paid after the expiry of the deferment period.”
“Public should not worry about their deposit in private sector banks, they should not resort to panic withdrawal,” said RBI governor.
Here are the top highlights of RBI Governor Shaktikanta Das’s press conference
RBI cuts repo rate by 75 bps to 4.4% from 5.15%
It cuts reverse repo rates by 90 basis points. .
Cash Reserve Ratio (CRR) cut by 1% to 3% 3.
Minimum daily CRR maintenance will be 80%
All Banks, HFCs, NBFCs allowed 3 months moratorium for EMI