{"id":86551,"date":"2020-05-23T21:34:14","date_gmt":"2020-05-23T16:04:14","guid":{"rendered":"https:\/\/factly.forumias.com\/?p=15625"},"modified":"2020-05-23T21:34:14","modified_gmt":"2020-05-23T16:04:14","slug":"rbi-announces-nine-additional-measures-for-strengthening-the-economy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-announces-nine-additional-measures-for-strengthening-the-economy\/","title":{"rendered":"RBI announces nine additional measures for strengthening the Economy"},"content":{"rendered":"\n<p><strong>News:<\/strong>Reserve Bank of India(RBI) has announced several measures for strengthening the Economy in the uncertain times ushered in by the COVID-19 pandemic.<\/p>\n\n\n\n<p><strong>Facts:<\/strong><\/p>\n\n\n\n<p><strong>Key measures:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Repo Rate: <\/strong>It is the rate at which the RBI lends money to the banks for a short term.It has been reduced by 40 basis points from 4.4% to 4.0%.<\/li><li><strong>Reverse Repo Rate: <\/strong>It is the short term borrowing rate at which RBI borrows money from banks.It has been reduced from 3.75% to 3.35%.<\/li><li><strong>Marginal Standing facility: <\/strong>It is a window for banks to borrow from the Reserve Bank of India in an emergency situation when interbank liquidity dries up completely.It has been reduced from 4.65% to 4.25%.<\/li><li><strong>Consolidated Sinking Fund:<\/strong> States have been allowed to borrow more from Consolidated Sinking Fund which is being maintained by state governments as a buffer for repayment of their liabilities.<\/li><li><strong>Extension of Moratorium on Loan Repayments:<\/strong> The lending institutions have been permitted to extend the moratorium (suspension) on term loan instalments by another three months till 31st August, 2020.<ul><li>A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and either a fixed or floating interest rate.<\/li><\/ul><\/li><li><strong>Voluntary Retention Route(VRR):<\/strong> Rules have been relaxed under VRR which is an investment window provided by RBI to Foreign Portfolio Investors to provide easier rules in return for a commitment to make higher investments.<\/li><li><strong>Special Refinance Facility:<\/strong> RBI had announced a special refinance facility of \u20b915,000 crore to SIDBI at RBI\u2019s policy repo rate for a period of 90 days.This facility has now been extended by another 90 days.<\/li><li><strong>Export Credit: <\/strong>The maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks to exporters has been increased from the existing one year to 15 months for disbursements made up to July 31,2020.<\/li><li><strong>Line of Credit: <\/strong>A line of credit of \u20b915,000 crore will be given to the EXIM Bank, for financing India\u2019s foreign trade.The loan facility has been given for a period of 90 days, with a provision to extend it by one year.<\/li><li><strong>Import Payments: <\/strong>The time period for import payments against normal imports into India has been extended from six months to twelve months from the date of shipment.<\/li><li><strong>Maximum Credit: <\/strong>The maximum credit which banks can extend to a particular corporate group has been increased from 25% to 30% of the bank\u2019s eligible capital base.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:Reserve Bank of India(RBI) has announced several measures for strengthening the Economy in the uncertain times ushered in by the COVID-19 pandemic. Facts: Key measures: Repo Rate: It is the rate at which the RBI lends money to the banks for a short term.It has been reduced by 40 basis points from 4.4% to 4.0%.&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-announces-nine-additional-measures-for-strengthening-the-economy\/\">Continue reading <span class=\"screen-reader-text\">RBI announces nine additional measures for strengthening the Economy<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3809,394],"class_list":["post-86551","post","type-post","status-publish","format-standard","hentry","category-economy","tag-economic-measures","tag-rbi","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700788166,"cached_date":1704673637},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86551"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86551\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}