Good News for Middle Class: RBI announces Extension of Moratorium on Loan payments, and Other Financial Assistance!

The Reserved Bank of India on Friday, has announced the extension of the moratorium on loan repayments by three months, taking the coronavirus pandemic into consideration.

The RBI has announced a three-month moratorium (March 1 to May 31) on loan and card repayments and slashed the policy rate. Repo rate by 5 basis points and Cash Reserve Ratio of banks by 100 basis points. These steps have been taken as contingency plans to reduce the pain of borrowers who are affected by the pandemic.

Moratorium on term loans available till May 31, now extended by another three months till August 2020 @IndianExpress

— Sandeep Singh (@Tweetsandeep) May 22, 2020

Hence the repo rate and the reverse repo rates, reduced by the central bank, now stand at 4 per cent and 3.35 per cent.