RBI extends moratorium on loan repayments by three more months in view of COVID-19: RBI Governor

RBI extends moratorium on loan repayments by three more months in view of COVID-19 said RBI Governor in a press statement.

The Reserve Bank of India (RBI) on Friday reduced the repo rate by 40 basis points to 4 percent in an effort to further boost liquidity in the economy which has been reeling under the impact of COVID-19 induced countrywide lockdown.

As a result, the reverse repo rate stands at 3.35 percent, said RBI Governor Shaktikanta Das. The six-member monetary policy committee (MPC) voted 5:1 in favor of the decision.

Repo rate is the rate at which a country's central bank lends money to commercial banks, and the reverse repo rate is the rate at which it borrows from them.