Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said the GDP growth in 2020-21 is expected to remain in the negative category with some pick up in second half. The RBI also cut repo rate by 40 basis points to 4% from 4.40%. The bank rate stands reduced to 4.25%. Reverse repo rate was also cut by 40 bps to 3.35 % from 3.75% The decision was reached after a 5:1 vote at the MPC meet.
This is the governor's third such presser in the context of COVID-19 related measures in last two months. The first one was on March 27 and the second on April 17.
RBI also extended loan moratorium by another 3 months till August 31.
The loan moratorium will be extended till August 31, says RBI governor Shaktikanta Das. This makes it a six-month moratorium. He added that the lending institutions are being permitted to restore the margins for working capital to the origin level by March 31, 2021.
Das said RBI will continue to be vigilant and will take whatever measures are needed to be taken due to the Covid pandemic.
Measures on market, exports & imports, debt servicing, etc to be announced today
- improve functioning of market
- support exports and imports
- relief on debt servicing
- steps to ease the financial constraints of state governments.