India Witnesses Negative Economic Growth Says RBI:- Shaktikanta Das, the Governor of Reserve Bank of India (RBI) made it clear that the moratorium on the loan EMIs would be extended for three more months, till August 31st. He said that the country is battling with coronavirus pandemic and it needs 40 basic points cut to lower the repo rate to 4 percent from 4.4 percent. The moratorium of loan EMIs will be ending on May 31st and Shaktikanta Das now announced an extension for three more months. Several employees across the country received a huge relief with this moratorium announcement. The EMI payments will start once the moratorium period of August 31st comes to an end.
The payment of interests on working capital too is extended by three more months. The interest that is accumulated for this six-months moratorium period will be converted into a term loan said Shaktikanta Das. The bank exposure to corporates has been increased to 30 percent. Shaktikanta Das said that the country witnessed negative economic growth because of the coronavirus lockdown. The GDP growth in 2020-21 is negative and it has disrupted all the economic growth of the country. The investments are in demand and the revenues across the government firms are badly impacted said Shaktikanta Das. The combination of monetary, administrative and fiscal actions can revive back the economy in the second half of the year said Shaktikanta Das.