Reserve Bank will appeal to all banks to grant 3 months discount to EMI, will the banks consider it?

New Delhi, Mar 27, 2020, Friday

In the midst of a lockdown, the Government of India today announced another day of concessions to give relief to the economy.

Today, the Reserve Bank of India has appealed to the banks to provide 3 months relief to the people in view of the middle class.

The RBI has simply advised and appealed to banks not to order. Under these circumstances the ball is now in the banks' court. Now the banks have to decide whether to give people three months' flexibility in paying the loan installment.

At the same time, the banks have to decide what kind of loan to be repaid. Thus, the announcement of the Reserve Bank has created a new puzzle. Which is not going to be resolved unless the bank itself declares itself.

However, the decline in the repo rate by the RBI is the largest in history. The benefit to millions of people who take home, car and other loans. In addition, the reverse repo rate has also been cut by 90 basis points. Thus, the reverse repo rate has now fallen to four percent.

However, GDP growth rates and inflation rates have not been released.