EMI Moratorium Facility Can Extend another 3 months.

If you have taken a loan and work to pay EMI every month, then this news is for you only. In this period of coronavirus crisis and lockdown, the loan moratorium facility provided by the Reserve Bank of India (RBI) can be extended for another three months (August). It may be announced soon.

Sources have been quoted in the media as saying that banks have appealed to the Reserve Bank of India to extend the loan moratorium period further. 

At present, on the instructions of RBI, all banks in the country have given relief on filling EMI for 90 days (March to May) on all types of loans. During this period, there is no relief from the increase in interest on the loan. Customers can pay the increased interest in further installments.
Explain that on Saturday, RBI Governor Shaktikanta Das had a meeting with the heads of public and private sector banks. In this meeting, several banks had suggested to the RBI to extend the morotorium facility for 90 more days. Banks had said that the cashflow in the business can be evaluated only after this additional period. 
According to the sources, the banks say that the RBI has not yet made any promises but is aware of their problem in view of the extension of the lockdown.
The RBI governor held a meeting with the heads of banks in two separate sessions through video conferencing. In this meeting, apart from Loan Moratorium, credit flow was also discussed in other sectors of the economy. 
Also, liquidity was discussed in non-banking finance companies, microfinance institutions, housing finance companies and mutual funds. Also, the RBI talked to the banks about the functioning of their international branches.

RBI did this in lockdown

During the lockdown, the RBI has taken several major decisions. To encourage banks to lend more, the RBI has lowered the main policy interest rate (repo rate) from 0.75 per cent to 4.4 per cent, an 11-year low. Apart from this, the reverse repo rate was also reduced to 3.75 percent, so that the bank will use surplus funds present in the system to lend. The reverse repo rate is a major monetary tool for controlling the cash supply.

Earlier, the government has announced a package of Rs 1.7 lakh crore, under which arrangements have been made to provide free food grains to the poor, who are facing challenges due to the coronavirus epidemic and also have cash in their hands.