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As Coronavirus Pushes Economy Further to the Edge, RBI Steps in  

All economic activities have taken a hit due to the lockdown. The RBI signals that it is ready to fight COVID-19. 

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Video Editor: Purnendu Pritam, Mohd Ibrahim

The Reserve Bank of India was expected to make some big announcements as 31 March was very close. In the times of coronavirus outbreak and economic slowdown, we can expect the government, the RBI and other regulatory bodies to give packages. Right on schedule, the RBI announced a slew of measures to fight the coronavirus pandemic.

Big Announcements by RBI

The RBI has given three extra months to the borrowers in which they can pay off their loan. This allows banks to avoid declaring them as NPAs (Non-Performing Assets). Earlier, the RBI had taken many steps to expand liquidity and maintain financial stability. Now, the RBI has cut the repo rate and the reverse repo rate.

Repayment of Loans

The RBI also said that lending institutions could postpone or defer their loan repayment times. There will be change in the floating rates also. All this is being done because common people may be unable to pay their EMIs. However, no waiver was given on interest rates.

RBI’s Assurance on Private Banks

Because of the Yes Bank crisis, depositors have lost confidence in private banks. To generate faith among people, the RBI assured that peoples’ money in private banks is safe.

Fight With COVID-19

It is important to fight COVID-19 and all these steps are being taken to revive the economy. Since economic activities have taken a hit, we will see a long term effect of this. The steps taken by RBI were necessary and timely.

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

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Topics:  RBI   coronavirus   COVID-19 

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