RBI cuts repo, FM says slashed interest rate needs quick transmission

Finance Minister Nirmala Sitharaman on Friday asked banks to “fast forward” reduced interest rates as the RBI sharply cut the policy rate by 75 basis points to increase the liquidity of the financial system in the face of the pandemic. COVID-19.

In a tweet, the Minister of Finance also welcomed the statement by RBI Governor Shaktikanta Das that the macroeconomic fundamentals of the Indian economy are solid and in fact stronger than they were in the aftermath of the crisis 2008-2009 global financial reporting.

“Appreciate @RBI @ DasShaktikanta’s reassuring words on financial stability,” she said.

The three-month moratorium on term payment installments (EMI) and interest on working capital provide much-needed relief, she added.

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“… the fall in interest rates must be passed on quickly,” the finance minister said in another tweet.

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At the same time, welcoming the RBI’s decision to grant a three-month moratorium on the payment of term loans, the Minister of Trade and Industry, Piyush Goyal, said that in the midst of this hour of need, “the decision brought much-needed relief to people and businesses.”

In addition to other measures to help the economy cope with a lockout, the RBI announced measures to release primary liquidity from Rs 1.37,000 crore in the banking system and reduce the cash reserve ratio ( CRR) of 100 basis points with effect from March 28 for one year.

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