New Delhi: The Reserve Bank of India has announced a slew of measures to ameliorate the hardship of the people in the face of the economic stalemate arising out of the 21-day lockdown.
Here’s how you will benefit from the measures
1. The Repo rate has been reduced. Repo rate is the interest rate in which the central banks offer other bank loans. So, banks can take loans from the RBI at a lower rate. Mostly the banks pass this benefit to customers by lowering the rate of the interest.
2. RBI has reduced the daily requirement of CRR balance from 90 percent to 80 percent. This is the number of funds that the banks are bound to keep with the RBI. When this is reduced, the banks have more money in their hands.
3. If you are an EMI-payer, then your EMI won’t be deducted from your account automatically for the next three months as the RBI has allowed all lending institutions to permit a three-month moratorium on all payment of installments.
4. There is enough money in the system. The Reserve Bank has injected liquidity of Rs 2.8 lakh crore through various instruments, equivalent to 1.4 percent of our GDP. Together with the measures announced today, RBI’s liquidity injection works out to about 3.2 percent of GDP.