RBI EASES EMIS FOR 3 MONTHS LOOKING AT CORONA EFFECT
Rajesh Mohapatra,Odishabarta
ROURKELA:The pandemic, ‘Corona’ is taking into grip to everyone including financial health of the country. This has made so pathetic globally that we have lost many people, figure is more than 19000. Even it is not sparing big shot like Prince of Wales and recently the news of British Prime Minister, Boris Johnson who is tested corona positive. Looking at its effect and wide spread, effecting financial health, RBI has eased EMI loans by permitting a grant of moratorium for three months to all lending institutions in the country on term loans including credit cards. It has also specified that the loan payments must fall between 1st March to 30th May, 2020. It includes payment of interest plus principal, bullet repayments and EMIs on credit cards. Interest will accrue on outstanding portion during the moratorium period. These EMIs has to pay by the borrowers but the time is given 3 months and if anybody wants to pay as usual, then they can. It will help people who have taken all these loan and finding difficulty to pay repay the EMIs because of COVI-19 outbreak. RBI has announced new Repo rate down by 75 bps bringing it down to 4.4% resulting to have more liquidity in the market. These are different steps taken by the regulator, RBI to boost the confidence of the business houses. The business slowdown due to COVID-19 and subsequent Lockdown will have sense of relief. During this week Central Govt. has come up with many announcements to ease the people and give courage to fight Corona. The worst hit of this Corona effect is MSMEs who are severely hit due to production and operational problem. Many employees working there is now either working from home or given a break for this Lockdown. If this Lockdown continues for some period then few MSMEs won’t be able to sustain in long run.
