RBI Loan EMI Moratorium Extended Relief for HOME Loan CAR Loan | All RBI Announcement on 22 May 2020

RBI Announced Extension of Loan Moratorium by further three months upto 31 August 2020
Synposis of all major announcements made by RBI on 22.05.20
Term loan moratorium extended till August 31, 2020: The moratorium is now of six months starting from 1st Mar 2020 to 31st Aug 2020. Huge Relief as Borrowers shall not be required to pay their Loan EMIs during this extended period i.e. upto 31st Aug 2020

Deferment of Interest on Working Capital - Interest on working capital in form of Cash Credit or ODs is deferred by another 3 months i.e. till 31st August, 2020.
Margin for Working Capital - Drawing Power – RBI Announced today that Lending institutions are now permitted to restore the reduced margins for working capital to their original level by 31st March, 2021 instead of previously announced 31st August 2020 . (Make easier for businesses to manage their cash flow)

Conversion of Interest on working capital to interest term loan - Lending institutions are being permitted to convert the accumulated interest on working capital facilities over the deferment period (up to August 31, 2020) into a funded interest term loan (Repayable before 31st March, 2021).
Now the interest accumulated over a deferment period of 6 month shall not be required to be paid in one shot but will be converted to funded interest term loan which shall be repayable during current FY upto 31st March 21

Assets Classification - Loan Moratorium shall not result in downgrading of assets classification or impact credit history of borrowers

Repo rate has been reduced by 40 bps to now 4 percent ( As s result Bank Rate now stands at 4.25% and Reverse Repo rate reduced to 3.35%)

Export Credits - Maximum permissible period of (Pre and Post Shipments) export credit extended from 12 months to 15 months for disbursements made upto 31st July 2020

Support to EXIM Bank Line of Credit of Rs. 15,000 crores extended
Relaxation in Payment against Imports
Support to SIDBI - Extension of Refinance facility to SIDBI of Rs. 15000 crore at RBI policy repo rate

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