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Last Updated : Mar 27, 2020 10:46 PM IST | Source: Moneycontrol.com

Latha Venkatesh explains what the 75 bps RBI rate cut means for borrowers

RBI Governor Shaktikanta Das, in a statement, permitted banks to allow a moratorium of three months on equated monthly instalment (EMI) payments

Latha Venkatesh

In the wake of the coronavirus pandemic, the Reserve Bank of India (RBI) on March 27 reduced its repo rate by a massive 75 basis points to 4.40 percent.  Accordingly, the marginal standing facility (MSF) rate and the bank rate stand reduced to 4.65 percent from 5.40 percent.

The reverse repo rate under the liquidity adjustment facility (LAF) stands reduced by 90 basis points to 4 percent. This will bring down interest rates for borrowers, once banks pass on the policy rate cuts.

In addition, RBI Governor Shaktikanta Das, in a statement, permitted banks to allow a moratorium of three months on equated monthly instalment (EMI) payments. What the huge RBI rate cut means for you and your loans. Latha Venkatesh of CNBC-TV18 explains.

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First Published on Mar 27, 2020 10:45 pm