CHANGE IN POLICY BY RBI and it's meaning.

CHANGE IN POLICY BY RBI and it's meaning. 

1. RBI extends moratorium on term loans for 3 more months till August 31st

What does it mean?

The time during the loan term

when the borrower is not required

to make any repayment has been

increased by 3 more months.

2. RBI reduces repo rate from 4.4% to 4% 

What does it mean?

The rate at which the Reserve

Bank of India lends money to

commercial banks in the event

of any shortfall of funds has

been reduced to 4%.

3. RBI  reduces reverse repo rate to 3.35% 

What does it mean?

The reverse repo rate is the

rate at which RBI borrows money

from commercial banks within

the country.

4. RBI increases the export credit period from 1 year to 15 months.

What does it mean?

With India's exports and imports getting

impacted by the pandemic, the Reserve

Bank of India (RBI) has decided to increase the maximum permissible

period of pre-shipment and post-shipment export credit sanctioned by banks from the existing 12 months to 15 months.