Giving huge financial relief to the people amidst the lockdown, the RBI announced drastic reduction in the repo rate and reverse repo rate. The RBI has cut the repo rate by 75 basic points, after which the repo rate has come down from 5.15 to 4.45 per cent. Apart from this, the Reserve Bank has advised the banks to give a three-month exemption from EMI to those who give loan EMI. Now it will depend on the bank whether or not it gives discount to the customers in EMI.
With this, banks will also decide which EMIs they are giving discounts on. There is a dilemma among the people that banks are giving discounts on retail, commercial or which type of loan. Let us tell you once again that RBI has only advised banks to provide three months relief in EMI, the bank is not committed to give relief in three months EMI. However, with the reduction in the repo rate, crores of people who fill home, car and other types of loans will benefit. The RBI has also reduced the reverse repo rate by 90 basic points to four per cent.
Praising the decision of RBI, PM Narendra Modi has said that it is an important step for the economy. PM Modi said that the RBI has taken a big step to protect the economy from the damage caused by the corona virus. PM Modi said that the decision of RBI will save and benefit the middle and business class. Significantly, Finance Minister Nirmala Sitharaman has announced a special package of 1.70 lakh crore for the poor due to the 21-day lockdown.