The RBI has announced a cut in the repo rate amid Corona crisis in the country. A reduction of 75 basis points has been observed in the repo rate. With this reduction, the repo rate has come down to 4.40 per cent. At the same time, the reverse repo rate has been cut by 0.90 percent. With this cut it has become 4 per cent.
The benefit of the repo rate reduction is expected to be available to crores of people who pay many EMIs including home, car or other types of loans.
RBI Governor Shaktikanta Das said that because there is a lot of uncertainty, it is difficult to estimate the growth rate and inflation. RBI Governor said that banks can postpone EMI for 3 months if desired. RBI gave discounts to banks, saying that banks can avoid taking EMI of home, car loan etc. for three months.
RBI Governor Shaktikanta Das said, “The Indian banking system is secure and strong. In recent times, the Corona virus-related instability in the stock market has affected the share prices of banks, which has resulted in people panicking and withdrawing deposits from some private sector banks. ”