In order to ease the financial stress which was caused by the COVID-19 pandemic in the country, the Reserve Bank of India (RBI) on Friday announced that the loan moratorium will be extended by 3 more months.
Now the moratorium will end on August 31 which was earlier till June 1.
The RBI has reduced the repo rate by 40 basis points from 4.4 per cent to 4 per cent while the reverse repo goes to 3.35% from 3.75%.
A repo rate is the rate of interest which is given to commercial banks during a shortfall of funds in order to control inflation. It is provided to commercial banks by the central bank of a particular country and in case of India, it is the Reserve Bank of India.
The RBI has also increased the export credit period to 15 months which was earlier 1 year.
It further allocates Rs 15,000 crore to EXIM banks to avail US dollar swap facility which will have a rollover facility to up to one year.
RBI offered another 90-days extension to Small Industries Development Bank of India for the 90-day term loan facilities.
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