‘‘Reduction in repo rate, additional liquidity of about Rs 3.74 lakh crore induced reduction in CRR, Long Term Repo Operations and enhancement of Marginal Standing Facility and the moratorium of three months on payment of installments in respect of all term loans outstanding as on 1 March 2020 are all timely and well-intentioned measures by RBI to address the financial stress owing to COVID-19. We sincerely hope for their quick implementation by the Banks and NBFCs.
Together with Government’s Garib Kalyan announcements made yesterday, they are aimed at withstanding the financial and economic consequences of COVID-19 tragedy. CREDAI heartily welcomes these announcements and wishes that on the strength of these measures, India comes out of the COVID-19 shock quickly enough without further sacrifice.
We do hope the moratorium of three months on term loans announced by Governor, RBI covers both interest and principal amount. In addition, RBI may consider providing additional capital for business continuity and payment of wages to real estate until return of normalcy.’’