Decoded! RBI Policy With Anil Singhvi: Expert Ajay Bagga says no clarity on loan moratorium
While the Reserve Bank of India (RBI) has maintained the status quo by not changing key policy rates, it is still unclear if the moratorium on loan repayments has been extended or not, Ajay Bagga, said this immediately after the monetary policy announcements was made
Zee Business Managing Editor Anil Singhvi and his panel of experts have decoded the announcements made by RBI Governor Shaktikanta Das today. Significantly, while the Reserve Bank of India (RBI) has maintained the status quo by not changing key policy rates, it is still unclear if the moratorium on loan repayments has been extended or not, Ajay Bagga, said this immediately after the monetary policy announcements was made.
Bagga said that the RBI has allowed granting of concessions on account of financial difficulty of the borrower under the 7 June 2019 ‘Prudential Framework on Resolution of Stressed Assets’.
This resolution provides a principle-based resolution framework for addressing borrower defaults.
WATCH | Video Below - Full Coverage of Ajay Bagga Comment
He further said that an expert committee under the Chairmanship of K.V. Kamath will sit and then give its recommendations on this issue and this may well take 2-3 months.
Today, Governor Das said that the RBI is constituting an Expert Committee which shall make recommendations to the RBI on the required financial parameters, along with the sector specific benchmark ranges for such parameters, to be factored into resolution plans.
In its August Monetary Policy announcement, the RBI today kept the repo rate unchanged at 4 per cent while the reverse repo rate at 3.35 per cent. RBI has maintained an accommodative stance, Das said in his Monetary Policy announcement.
The Governor today indicated recovery in the economic activity, adding that the surge in infection has forced imposition of lockdown.
The Governor today said that the real GDP growth shall remain in negative zone in the 1st half and in full fiscal the economic growth will during this period.
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This was the 24th meeting of the MPC. The fast-changing macroeconomic environment and the deteriorating growth outlook necessitated off-cycle meetings of the MPC -- first in March and then again in May 2020. The MPC has cumulatively cut the repo rate by 115 basis points over these two meetings, resulting in total policy rate reduction of 250 basis points since February 2019, with an aim to boost economic growth.
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