Credit Policy Updates:- Shaktikanta Das allows to pause loan EMIs for 3 months and announce 75 bps repo rate cut
How to pause 3 months EMI. Is the bank paused EMI automatically or we need to apply for EMI pause in the bank.
RBI has announced 75 basis point cut in repo rate, effectively taking the repo rate to 4.4% from the earlier 5.15%. Along with this RBI has allowed banks and financial institutions to put a moratorium on term loans. Shaktikanta Das added that the MPC refrained from Projecting inflation and growth this time as the situation was too volatile.
The RBI has also announced a comprehensive package, including measures to expand liquidity, steps to reinforce monetary transmission, efforts to ease financial stress by relaxing repayment and endeavor to improve the functioning of the market. “The world is fighting an invisible assassin,” Das said while he announced a slew of measures, including measures to infuse liquidity and a 3-month moratorium on term loans.
The RBI Governor has clarified that the non-payment of EMIs during the moratorium period will not result in asset classification downgrade. Heightened volatility, unprecedented uncertainty and extremely fluid state of affairs, projections of growth and inflation would be heavily contingent on the intensity, spread, and duration of COVID-19, Reserve Bank added.
But the main question in all minds is that How to pause 3 months EMI. Is the bank paused EMI automatically or we need to apply for EMI pause in the bank.