Placeholder canvas

RBI measures have COVID-19 proofed the Indian Economy: Experts

Date:

The decision of the RBI to reduce the Reverse Repo Rate by 25 points is being hailed as a move that will benefit the economy by the experts. Many have opined that this has COVID-19 proofed the economy.

The RBI’s move is expected to increase the liquidity options for the banks and permit more access to credit by different sectors of the economy.

ALSO READ: COVID-19 | RBI cuts reverse repo rate by 25 bps; says India will ‘cure & endure’

“Additionally, the move to allow extension of NBFC loans to delayed commercial real estate projects by a year without restructuring brings about some much-needed relief for the developers,” said Ram Raheja, Director at S Raheja Realty.

“COVID-proofing the economy is the need of the hour. We further hope to see some stimulus package from the government as well to help relieve the stress in the residential real estate sector,” he added.

Sanjay Doshi, Leader of Financial Services Advisory at KPMG in India, said the RBI moves are a welcome immediate relief not only to NBFCs, HFCs, MFIs, cooperative banks and RRBs but also to their borrower base.

“Further, a standstill on NPA classification on standard overdue accounts as on February 29 to avail moratorium will be a huge relief to such borrowers. However, banks will need to do a balancing act between extending moratorium and providing new credit due to this provisioning requirement,” said Doshi.

The move to allow extension of loans to NBFC’s to the real estate sector is being seen as a move to placate an already deeply affected sector that contributes to about 8% of the total GDP.

The RBI has also halted its existing classification of Non-Performing Assets (NPA) and this is expected to relieve the pressure off the banks and give more space towards lending.

Earlier, IMF had predicted lower growth for India in its latest outlook and the RBI is trying to vary the monetary policy of the nation.

Click here for Latest News updates and viral videos on our AI-powered smart news

For viral videos and Latest trends subscribe to NewsMobile YouTube Channel and Follow us on Instagram

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Gangster-Turned-Politician Mukhtar Ansari Dies Of Cardiac Arrest

Banda: Gangster turned politician Mukhtar Ansari passed away at...

IPL 2024: Rajasthan Royals Defeat Delhi Capitals By 12 Runs

Jaipur: Rajasthan Royals clinched a 12-run win over Delhi...

FTX Founder Sam Bankman-Fried Sentenced To 25 Years In Prison For Fraud

New Delhi: Sam Bankman-Fried, the renowned founder of cryptocurrency...