On Thursday, Finance Minister Nirmala Sitharaman announced the economic package for the Coronavirus-ridden economy, and today the RBI governor has cut policy interest rates drastically. The governor announced a 75 bps reduction in the repo rate, the new rate being 4.4%.
The decision to cut the interest rate was expected at a meeting of the Monetary Policy Committee on 3 April. But due to the current situation due to Coronavirus lockdown, the RBI governor can announce it today. Experts believed that the policy rates could be reduced by 25 to 50 basis points.
RBI Governor Shaktikanta Das may make some big announcements to reduce the tension of the stranded business. It is expected that some announcements will be made about the NPA and banks will be asked to ease the loan terms so that companies can get help.
Finance Minister Nirmala Sitharaman announced a package of Rs 1.70 lakh crore on Thursday, giving relief to the Coronavirus-affected economy. This package was announced under the Pradhan Mantri Garib Kalyan Yojana so that 21 days of lockdown does not increase the hassle of the people and the poor people can easily get food, cash, etc.
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