New Delhi: The Reserve Bank has extended the moratorium period on loan relief and loan repayment for three months. Reserve Bank Governor Shaktikantha Das told reporters in a press conference here on Friday. According to the new decision, the moratorium will continue until August 31st. The Reserve Bank of India (RBI) is offering a six-month moratorium. The Reserve Bank of India (RBI) Governor hopes that this step will help to ensure adequate cash flow for small and medium enterprises.
Another major announcement by the Reserve Bank of India is the reduction in the repo and reverse repo rates. The repo rate has been reduced from 4.4% to 4%. The repo rate is the interest rate on short-term loans issued by the Reserve Bank to commercial banks. With the reduction in interest rates, the interest rates on various loans will be reduced. In addition to the repo rate, the RBI has also reduced the reverse repo rate (the interest rate on deposits received by Reserve Bank from commercial banks). The new reverse repo rate is 3.35%. It was 3.75 percent.
Food inflation hit an all-time high of 8.6 percent in April, the Reserve Bank Governor said in a press conference. Food inflation fell sharply in January, as seen in February and March, although inflation eased in January. Shaktikanta Das attributed the increase in prices of vegetables, oils, and milk products. However, inflation may be below 4 percent in the third and fourth quarters of the current fiscal, the Reserve Bank Governor added.
The Monetary Policy Committee estimates that there is a five percent growth rate this fiscal. Expected five percent growth for the full year, as it was able to grow 4.7 percent in the last quarter. But coronary pestilence hampered growth. India’s forex reserves have risen to Rs 9.2 billion, the Reserve Bank of India said today. The Reserve Bank of India currently has $ 487 billion of forex reserves. This is similar to import earnings for a year.
