Here comes a good news from the Finance Ministry. To help borrowers to cope with the economic fallout due to the dangers of Covid-19, finance ministry has written to the RBI. It has asked the Reserve Bank of India for a quick implementation of several emergency economic measures.
Debashish Panda, Department of financial services secretary conveyed to the RBI. He mentioned a deferment of equated monthly instalments (EMIs) for targeted individuals, interest & loan repayments and relaxation in the classification of nonperforming assets (NPAs), a person familiar with the matter told the ET.
Centre Relief Measures for Covid-19:
Interestingly, Centre is also actively considering an income support scheme for 10 crore poor families amid coronavirus. Currently, we all are fighting a slump in the country that is currently locked down for 21 days to stop the spread of coronavirus. The government is taking all possible measures to help during this harsh time. It is likely that the government can unveil an economic stimulus package of more than Rs 1.5 lakh crore, said a foreign news agency.
The package may be declared by the end of the week. It could mean direct transferring Rs 5,000-6,000 into the bank accounts of poor families.
Emergency Relief Measures:
The Finance Ministry letter stated the need for emergency relief measures as individuals & businesses face difficult times due to the coronavirus outbreak. It must be noted that businesses and individuals may not be able to service loans due to a lockdown of 3 weeks. They can’t risk hostile action by lenders & damage their credit profile.
