The reverse repo rate was also reduced by 90 basis points to 4 per cent.
The Reserve Bank of India (RBI) on Friday massively reduced the key lending rates in response to the Covid-19 outbreak.
Accordingly, the Monetary Policy Committee of the central bank in an unscheduled meet reduced the repo rate by 75 basis points to 4.40 per cent from 5.15 per cent.
Consequently, the reverse repo rate was also reduced by 90 basis points to 4 per cent.
Furthermore, the MPC voted to maintain accommodative stance, thus opening up possibilities for more future rate cut.
A moratorium of three months of EMIs on all outstanding loans was announced.
The statement says: “All commercial, regional, rural, NBFCs and small finance banks are being permitted to allow 3-month moratorium on payment of instalments in respect of all term loan EMIs outstanding on March 31.”
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