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RBI Governor Press Conference Highlights | Term loan moratorium extended till August 31, says Shaktikanta Das

Shaktikanta Das
RBI Governor Shaktikanta Das 

RBI Governor Shaktikanta Das May 22 addressed the media for the third time in three months to announce Coronavirus-related relief measures.

Here are the key highlights:

--Repo rate cut by 40 bps to 4 percent, Reverse Repo gets adjusted to 3.35 percent.

--GDP growth outlook for FY21 seen in negative territory, some pick up seen in H2 of FY21.

--Term loan moratorium extension for another three months till August 31

--Accumulated interest for moratorium period can be converted into a term loan. It does not have to be repaid immediately after moratorium ends

--Group exposure limit for lenders increased to 30 percent from 25 percent

Highlights of RBI measures since lockdown: Growth and inflation statements
> May 22
- FY21 GDP growth seen in negative territory
- MPC believes inflation outlook is uncertain
> April 17
- Inflation could decline further and settle below 4 percent by H2FY21
- Inflation to fall below 4 percent target by Q3, Q4

> March 27
- Implied GDP growth of 4.4 percent in H2 is now at risk
- Projection of growth and inflation to be heavily contingent on spread of pandemic

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