RBI Loan EMI Moratorium Extended 31 August, 2020 for Counter Covid-19
RBI Announces relief in loans by RBI Loan EMI Moratorium Extended 31 August, 2020
Term loan moratorium extended to 31st August 2020:-
- Moratorium is now of six months from 1st March 2020 to 31st August 2020.
- Huge relief as borrowers shall not be required to pay their loan EMIs upto 31st August 2020.
Deferement of interest on working capital:-
- Interest on working capital in form of cash credit or ODs is deferred by another 3 months i.e. till 31st August 2020.
Margin of working capital – Drawing power:-
- Lending institutions are permitted to restore the reduced margin for working capital to their original level by 31st march 2021 instead of previously announced 31st August 2020.
- Would make easier for businesses to manage their cash flows.(RBI Loan EMI Moratorium Extended 31 August, 2020)
Interest on working capital to interest term loan:-
- Interest accumulated over deferred period of 6 months shall not be required to be paid in one shot but will be converted to funded interest term loan.
- Repayable during current financial year upto 31st March 2021.(RBI Loan EMI Moratorium Extended 31 August, 2020)
No change in assets classification:-
- Loan moratorium shall not result in downgrading of assets classification or impact credit history of borrowers.(RBI Loan EMI Moratorium Extended 31 August, 2020)
Reduction in Repo Rate:-
- Repo rate has been reduced by 40 bps to now 4%.
- Bank rate now stands at 4.25%
- Reverse repo rate reduced to 3.35%
- Maximum permissible period of (pre and post shipments) export credit extended from 12 month to 15 months
- For disbursements made upto 31st July 2020.
Support to EXIM Bank:-
- Line of credit of Rs. 15000 crores extended to EXIM Bank for 90 days with rollover upto max period of 1 year.
- For US doller swap facility
Payment against Imports:-
- Extension of time period from 6 months to 12 months for making payments against normal imports.
- Normal Import i.e. excluding gold diamonds & precious stones jewellery.
Support to SIDBI:-
- Refinance facility to SIDBI of Rs. 15000 crore at RBI policy repo rate was announced earlier for 90 days.
- It has been extended for another 90 days.