Hours after Reserve Bank of India (RBI) Governor, Shaktikanta Das addressed media to cope with financial difficulties amid 21-day lockdown; they later clarified that all lending institutions are permitted to grant a moratorium of three months on payments of all installments on term loans, including credit cards.
This clarification came after the RBI permitted commercial banks and other financial lenders to allow borrowers to delay their loan repayments by a period of three months. The RBI took this decision keeping in mind the financial distress arising out of the global pandemic coronavirus and the economic havoc across the nation.
The media address was broadcasted live on different social media like, Facebook and Twitter. During his address Shaktikanta Das said "The economic outlook globally is uncertain and obviously negative... Financial stability is the topmost priority of the RBI in this crisis. Our priority is to undertake strong and purposeful action to protect the economy, and there is a need for all stakeholders to fight against the coronavirus pandemic," Das said.
"Indian banking system is safe and sound... In spite of the challenging environment, I remain optimistic," the RBI Governor added.
RBI Governor addressed the media a day after Finance Minister Nirmala Sitharaman announced a Rs 1.75 lakh-crore relief package after COVID-19 cases continue to rise across the nation.
RBI Clarification: Three months' moratorium on credit card dues also qualify for the new guidelines.
— Prasar Bharati News Services (@PBNS_India) March 27, 2020
