ई एम आई कम करें और नए लोन दें: कोरोना के विरुद्ध युद्ध में अब बारी बैंकों की

Reduce EMIs and give New Loans: It’s now Banks’ turn in the War Against Corona

In order to ensure that people do not have problems due to the lock down due to coronavirus, RBI has taken the decision to give relief in loan payment and to make the loan cheaper. Three months relief has been given in the payment of the term loan installment. The repo rate has also been reduced by 0.75%. This will make all types of loans cheaper. The repo rate was earlier 5.15%, now it is down to 4.40%. Six times RBI has reduced the repo rate in this way.

The RBI had previously cut the repo rate five times in a row. Which is historical. Never before has the repo rate been reduced so generously. Former Governors also had a dispute with previous finance ministers on the same thing. They did not reduce the repo rate so easily. But the current management of RBI and the central government is relatively more equitable, and banks are being reduced in loan rates to benefit the public. Now the burden of EMI on home loans, cars and personal loans is increased And will be less.

It is surprising that despite reducing the repo rate so much, banks have never taken the benefit of this to the general public as much as RBI has taken a flexible approach. With the reduced repo rate, banks are taking advantage of themselves by taking loans from the Reserve Bank at low rates. But the interest rates of public loans are not being reduced in that ratio. Despite the clear indications of the Finance Minister and Reserve Bank of India, why the banks are not reducing the interest rate of loans, it is not understood. While reducing the repo rate every time it is loudly propagated that “the general public will benefit, EMI will be reduced”.

There is a nationwide lockdown due to Corona virus. This has a direct impact on the income and business of the people. In such a situation, people have difficulty in repaying loans. The Reserve Bank has announced a relief for the loan holders. Reserve Bank Governor Shaktikanta Das said on Friday that there will be a 3-month morotorium on all term loans, which means EMIs will not be deducted from one’s account for three months. EMI repayment will start only after three months. The Reserve Bank has implemented it from March 1, so now you have to pay EMI from June itself. However, keep in mind that the EMI has not been waived, but has been deferred for three months. If your loan was to end in January in 2021, then it will end in April 2021.
The RBI governor said that withholding of interest payments on working capital would not be considered an omission, it would not affect the credit history of the borrower. He also said that the country’s banking system is strong. Deposits in private banks are also absolutely safe. People should not panic and withdraw money.
Apart from home loan, car loan, the benefit of repo rate reduction will be available in other loans as well as crores of people who are paying different EMIs are also expected to benefit.
The RBI governor said that the cash reserve ratio (CRR) has been reduced by 100 basis points to three per cent, for a period of up to one year, which will bring about Rs 1.37 lakh crore to the country’s banking system.

In addition, all commercial banks are being given a three-month exemption in interest and loan payments.

The RBI Governor said that the steps taken will bring a total of Rs 3.74 lakh crore to the banking system of the country.

The relief of the RBI will benefit the general public that if they are unable to repay the loan installment for three months due to lack of cash, it will not be considered a default. Small companies will get the benefit that three working capital loan interest payments Months of relief will be available and credit history will not be affected.

The economy and life are being affected by coronavirus. There were apprehensions that many customers may default. This would have increased the NPAs of banks, but will not happen now. Due to lack of cash due to non-payment of loans, measures have also been taken to increase cash.

Yesterday, the Finance Minister also announced a relief package of one lakh seventy thousand crores. In this too, most of the benefits will be given through DBT.

Therefore, it is now the responsibility of the banks how the government is supported in the war against Corona. Assistance to the poor through DBT, relief to the general public through EMIs, assistance of industrialists and businessmen by giving 3 months of morotium and new loan disbursements against the economic flow and liquidity provided by RBI, All this has to be done by banks now.

What is the repo rate?

In monetary policy, the repo and reverse repo rate which are often mentioned, we tell what this rate is and what is the effect of reducing it more.

Repo rate – Banks also require large sums of money for day-to-day operations, and in such a situation, the easiest option is to get a loan from the country’s central bank, ie the Reserve Bank of India (RBI). The rate at which the Reserve Bank charges interest on such overnight loans is called repo rate. If the RBI lowers this rate, then banks will get loans at a lower rate, they can also reduce their interest rates to attract customers, so that the borrowing customers can be increased more and more, And more money can be given on loan. Similarly, if the Reserve Bank increases the repo rate, it will become expensive for banks to take loans, and they will also increase the interest rates charged from their customers.

Reverse Repo Rate – As its name suggests, it is the reverse of the repo rate. Whenever banks are left with a large amount of money after a day’s work, they keep the amount on which the RBI pays them interest. Now the rate at which the Reserve Bank pays interest on this overnight amount is called reverse repo rate. Reverse repo rates are used to control the liquidity of cash in markets. Whenever there is too much cash in the markets, the RBI increases the reverse repo rate, so that banks deposit their money with it to earn more interest, and thus less money will be left in the possession of banks in the market.

– Sarwagya Shekhar