20
Tuesday
October 2020
8:57 PM IST
News Headlines
ED grills Farooq Abdullah for six hours in JKCA graft case, People''s Alliance says it''s vendetta        NCW seeks explanation from Kamal Nath for his remarks against MP minister        Imran Khan incapable and clueless; betrayed people of Pakistan: Opposition leaders        Nawaz Sharif''s son-in-law arrested in Pakistan        Kerala''s Covid tally touches 3.33 lakh with 5,022 fresh cases        HC restrains Customs from arresting Sivasankar till Oct 23, suspended officer discharged from hospital        Buttler, bowlers guide RR to seven-wicket win over CSK        Punjab beat MI in second Super Over        Saina, Sindhu's biggest Graffiti in India unveiled        Trump leans into fear tactics in bid to win Midwest states        US polls: New Congress could have more Indian Americans to the House Advertisement        Active COVID-19 cases below 8 lakh for 2nd day in row; recovery rate 88.03 pc        Flood situation grim in parts of Telangana, Karnataka        Dalit woman gang-raped at gunpoint in UP        Army pressed into service in 4 flood-hit Karnataka dists; CM to undertake aerial survey        Pakistan pacer Umar Gul announces retirement from all forms of cricket        HDFC Bank Q2 net profit rises 16% to Rs 7,703 cr        Biden warns Trump wants to scrap health law        BJP govt has surrendered in front of criminals: Akhilesh        Rahul Gandhi, Capt Amarinder vow to force centre to revoke black farm laws        
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Main News
RBI ramps up economic support; cuts interest rates, extends loan moratorium
 
Mumbai: The Reserve Bank of India (RBI) on Friday slashed interest rates, extended moratorium on loan repayments and allowed banks to lend more to corporates in an effort to support the economy which is likely to contract for the first time in over four decades.

The benchmark repurchase (repo) rate was cut by 40 basis points to 4 per cent, Governor Shaktikanta Das said announcing the decisions taken by the central bank's Monetary Policy Committee (MPC) that met ahead of its scheduled meeting in early June.

Consequently, the reverse repo rate was reduced to 3.35 per cent from 3.75 per cent.

He said the MPC had voted to maintain its accommodative stance, implying more rate cuts in the future if need arises.

The RBI supplemented the interest rate cut by extending by three months the permission given to all banks to give a three-month moratorium on payment of monthly instalments on all outstanding loans, providing relief to home and auto buyers as well as real estate sector where construction activities are already at a standstill.

The moratorium on interest on working capital was also extended by three months.

Also, interest accumulated for the six-month moratorium period can be converted into a term loan, Das said.

Further, bank exposure to corporates has been raised to 30 per cent of the group's networth from the current limit of 25 per cent, a move that will allow lenders to give larger loans to companies.

In its first official forecast for economic growth, the central bank has said the gross domestic product (GDP) is likely to contract in FY21 (April 2020 to March 2021).

Das said the inflation outlook is highly uncertain due to the outbreak of the COVID-19 pandemic and expressed concern over elevated prices of pulses.

He also said there is a need to review import duties to moderate prices.

Headline inflation may remain firm in the first half of the year and may ease in the second half. Inflation may fall below 4 per cent in the third or fourth quarter of the current fiscal, according to the Governor.

This is the second straight cut in interest rates in two months. On March 27, RBI had cut interest rates by 75 basis points.

"After extensive discussions, the MPC voted unanimously for a reduction in policy repo rate and for maintaining the accommodative stance of the monetary policy as long as necessary to revive growth and to mitigate the impact of COVID-19 while ensuring that inflation remains within the target," Das said.

The central bank will remain vigilant and in battle readiness to address dynamics of unknown future arising from COVID-19 outbreak, he added.


HC restrains Customs from arresting Sivasankar till Oct 23, suspended officer discharged from hospital
Army pressed into service in 4 flood-hit Karnataka dists; CM to undertake aerial survey
PM calls for speedy access to vaccines for citizens
Chirag claims he is Modi's 'Hanuman', BJP calls LJP leader 'vote katua'
Nitish behaved with my father haughtily, worked to defeat LJP nominees in LS polls: Chirag
No minister present, Punjab farmers boycott meeting on new farm laws
MISSION Kerala HC stays CBI probe against Life Mission CEO
Govt to give Rs 12,000 cr interest-free 50-year loan to states for capital projects
SC notice to Centre on pleas against farm laws
Ladakh standoff: India, China hold 7th round of high-level military talks
Kerala adds 9,347 fresh cases, toll climbs to 1,003 with 25 fatalities
Moratorium period exceeding six months may result in vitiating overall credit discipline: RBI to SC
Bhima Koregaon: NIA files charge-sheet against eight people, Fr Stan Swamy sent to judicial custody
India reports 73,272 new coronavirus cases, 926 fresh fatalities
Gold Smuggling Case : Sivasankar appears before Customs officials for interrogation
Union minister Ram Vilas Paswan dead
COVID-19 cases in India cross 68-lakh mark
India's GDP expected to contract by 9.6 per cent this fiscal: World Bank
COVID-19: 72,049 new cases take India's virus tally to 67,57,131
Rhea Chakraborty gets bail, comes out of prison after 28 days
KERALA NEWS
Kerala''s Covid tally touches 3.33 lakh with 5,022 fresh cases
 Thiruvananthapuram: Kerala on Monday recorded 7,469 recoveries and 5,022 new COVID-19 cases, pushing  
Jnanpith awardee Akkitham Achuthan Namboothiri dead
Kerala''s COVID-19 count crosses three lakh mark with 8,764 fresh cases
NCP welcomes Mani to LDF but not at cost of Pala seat
INTERNATIONAL NEWS
Imran Khan incapable and clueless; betrayed people of Pakistan: Opposition leaders
 Karachi: Prime Minister Imran Khan is "incapable and clueless", and his government is worse than a d
Nawaz Sharif''s son-in-law arrested in Pakistan
Trump leans into fear tactics in bid to win Midwest states
US polls: New Congress could have more Indian Americans to the House Advertisement
NATIONAL NEWS
ED grills Farooq Abdullah for six hours in JKCA graft case, People''s Alliance says it''s vendetta
 Srinagar: The Enforcement Directorate on Monday questioned National Conference president Farooq Abdu
NCW seeks explanation from Kamal Nath for his remarks against MP minister
Active COVID-19 cases below 8 lakh for 2nd day in row; recovery rate 88.03 pc
Flood situation grim in parts of Telangana, Karnataka
Untitled Page
Rashtra Deepika LTD
Copyright @ 2020 , Rashtra Deepika Ltd.