NITI Aayog hails RBI's decisions to counter COVID-19 impact on economy

Hailing the decisions taken by the Reserve Bank Of India (RBI) to mitigate the economic slowdown triggered by the COVID-19 lockdown, NITI Aayog CEO Amitabh Kant called them progressive and timely measures.

Taking to Twitter, Kant lauded RBI governor Shaktikanta Das and said he has provided much-needed relief to working capital with this announcement.

Referring to the COVID-19 outbreak in the country, Kant called the decision a "timely measure."

"Way to go: Progressive and timely measures by @RBI @DasShaktikanta's by giving 3-month moratorium on payments of term loan instalments (EMI) and much-desired relief on interest on working capital. Slashing Repo Rate and Reverse Repo Rate will infuse liquidity. Big, bold steps," the NITI Aayog CEO tweeted.

The RBI on Friday announced that the banks are permitted to allow a 3-month moratorium on payment of installments of all term loans outstanding on March 1, 2020.

This decision applies to all financial institutions of the country which includes -- regional, rural banks, co-operative banks, NBFCs and Housing Finance Companies.

The central bank also lowered the key repo rate by 75 basis points to 4.4 per cent in a bid to arrest the economic slowdown amid coronavirus (COVID-19) outbreak.