Big announcement: Filed for 3 months EMI, repo and reverse repo rate reduced
New Delhi: Due to Corona hitting on the whole country, the government as well as the Reserve Bank of India (RBI) has started taking many big steps. These steps of RBI are going to give relief to the people of the country. Taking a big decision, where the repo rate, reverse repo rate, cash reserve ratio has been cut, while giving a big relief to the people of the country in this sad time, they have been discharged from filling EMI for 3 months i.e. On for loans from the EMI, which were filled each month that you got rid of up to 3 months. RBI now'll fill EMI's debt three months later said.
EMI is postponed, is not forgiven ..
After the Reserve Bank's announcement, some people have started to believe that if they do not repay the EMI of the loan for three months, then they will get rid of these three instalments. It is not that at all. The Reserve Bank postponed EMI payment for only three months. It is not that these instalments are waived. The three instalments of the customers taking advantage of this will be increased, along with this, additional interest will also have to be paid for the period of these three months.
No relief for credit card customers at present
A senior State Bank official clarified that the credit card bill is not a term loan but your purchase bill. It is not included in the RBI announcement. Yes, if someone has made a big purchase with a credit card and has it converted into EMI, then it can be applied to it but for that also the concerned authority will have to issue a clarification.
Giving information, RBI Governor Shaktikanta Das said that there have been major cuts in policy interest rates. The repo rate has been cut by 75 bps, which has now come down to 4.4%. After the reduction in the repo rate, the monthly installments of the people will come down, which will be a relief for the common people. With this, the cash reserve ratio CRR has been reduced by 100 basis points i.e. 1%, now it has been reduced to 3%. For a full year, it will be 3% instead of 4%.
Governor Shaktikanta Das said that everyone needs to work together to deal with this epidemic of corona virus. He said, `` This step of RBI will provide a big relief to crores of people who have filled many types of EMIs including home, car or other types of loans. Or any non-banking commercial bank will be effective on loans taken from a housing finance. Home loan borrowers, borrowers for cars or any other motor vehicle Will benefit
Repo is the rate at which the Reserve Bank gives loans to other banks. For example, banks need a large amount of money for their day-to-day operations, for which banks take loans from the Reserve Bank and on this loan to the Reserve Bank The interest they have to pay is called the repo rate.
According to the reverse repo rate, banks get interest on the amount deposited with the Reserve Bank.
Under CRR, banks essentially keep a fixed percentage of their deposits with the Reserve Bank.
Translate from Arthparkash