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PM Modi, FM Sitharaman, BJP President JP Nadda give thumbs up to RBI repo cut, EMIs deferment

Prime Minister Narendra Modi said, 'RBI's announcements will improve liquidity, reduce cost of funds, help middle class and businesses'

twitter-logo BusinessToday.In        Last Updated: March 27, 2020  | 14:04 IST
PM Modi, FM Sitharaman, BJP President JP Nadda give thumbs up to RBI repo cut, EMIs deferment
RBI Governor Shaktikanta Das addresses the media via livestream from Mumbai

Prime Minister Narendra Modi, on Friday, praised the Reserve Bank of India (RBI) for taking measures to cushion the impact of coronavirus on the economy. The prime minister tweeted, "RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. The announcements will improve liquidity, reduce cost of funds, help middle class and businesses".


Also read: How RBI's Rs 3.74 lakh crore stimulus will impact financial markets

The Bharatiya Janata Party (BJP) President JP Nadda also took to Twitter to appreciate the central bank for taking measures amid the crisis. Nadda said that RBI has taken many important decisions to give support and stability to the Indian economy.

Nadda wrote on Twitter, "RBI has slashed down Repo rate, Reverse Repo rate and Cash Reverse ratio to give strength to the economy. To help the middle class RBI has given  moratorium of 3 months and also waving off interest. I welcome these progressive and timely measures".

Finance Minister Nirmala Sitharaman acknowledged RBI Governor Shaktikanta Das's efforts to bring economic stability in the country. Sitharaman, in her tweet, stated that RBI's announcement to provide 3-month moratorium on payments of term loan instalments (EMI) and interest on working capital will give much-desired relief. The FM also said, "Slashed interest rate needs quick transmission".

Also read: Banks free to defer payment of EMIs by 3 months! RBI gives huge loan relief

On Thursday, RBI Governor Shaktikanta Das injected  Rs 3.74 lakh crore liquidity into the system through various measures. The central bank announced a massive 75 basis points cut in repo rates and slashed reverse repo rate by 90 basis points to 4 per cent.

Also read: RBI announces liquidity boost of Rs 3.74 lakh crore amid coronavirus outbreak

Besides, RBI also reduced cash reserve ratio (CRR) of all banks by 100 basis points to 3 per cent from 4 per cent. Among others, the RBI announced  "three-months moratorium on term loans; deferring interest payments on working capital; easing of working capital financing; deferment of implementation of the net stable funding ratio".

(Edited by: Mansi Jaswal)

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