PM Modi Hails RBI Steps To Safeguard Economy

Prime Minister Narendra Modi took to Twitter on Friday to commend the steps taken by the Reserve Bank of India (RBI) to spur growth in the Indian economy. PM Modi, in his tweet, said that the RBI had taken "giant steps to safeguard our economy from the impact of the coronavirus." He added that the announcements made by the Reserve Bank will improve liquidity, reduce cost of funds help middle class and businesses.

RBI governor Shaktikanta Das announced a slew of measures on Friday morning in a video conference with the media. Das said that the central bank had slashed key repo rate by 75 basis points to 4.4% in order to revive growth to help India combat COVID-19.

The Monetary Policy Committee (MPC) meeting was advanced to March 25-27 in view of the outbreak of COVID-19 and its impact on the economic situation, the RBI Governor told the media. In a significant move, the Reserve Bank of India has been permitted banks to defer payment of EMIs on all term loans which were outstanding on March 1. Banks would now be mandated to give a three-month deferral to customers without penalising them for defaulting.

The RBI governor's announcement came a day after Union Finance Minister Nirmala Sitharaman announced a Rs.1.70 lakh crore relief package to protect the poor from the economic impact of coronavirus.

NITI Aayog CEO Amitabh Kant also complimented the Reserve Bank of India Governor for the measures taken by the central bank. He commended the Bank for bringing in the moratorium of three months and waiving interest for this period. Kant also lauded the RBI for the "timely and progressive measures."