HIGHLIGHTS OF RBI GOVERNOR’S ANNOUNCEMENTS DATED 22.05.2020

1. Maximum permissible period of pre and post shipment of credits increased from 1 year to 15 months

2. Rs 15,000 crore to EXIM banks

RBI allocates Rs 15,000 crore to EXIM banks to avail US dollar swap facility. This will have a rollover facility to up to one year.

3. RBI extends the three-month moratorium

  • The loan moratorium will be extended till August 31 2020.
  • This makes it a six month moratorium
  • Lending institutions are being permitted to restore the margins for working capital to the origin level by March 31, 2021

4. Policy announcements

  • Improve functioning of markets and market participants
  • Support exports and imports
  • Relief on debt servicing
  • Steps to ease the financial constraints of state governments

5. Monetary policy transmission has improved

An improvement in passing on a lower rate to borrowers has been noticed across various business segments.

Combination of fiscal, monetary, and administrative measures will help economy revive in the H2

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