COVID19: Banks, financial institutions allowed 3-month moratorium on payment of all loans
The Reserve Bank today permitted banks, NBFCs (including housing finance companies) and other financial institutions to defer term loan installments by three months.
RBI governor Shaktikanta Das said that moratorium on term loans, deferment of interest payment will not result in downgrade of asset classification for financial institutions.
The RBI today cut repo rate by 75 basis points and also cut cash reserve ratio by 100 basis points. Besides that the central bank announced different measures to improve liquidity in the financial system. These measures will help lower interest rate in the overall banking system.