Finance Minister Nirmala Sitharaman on Friday asked banks for “quick transmission” of slashed interest rate as the RBI cut the key lending rate sharply by 75 basis points to boost liquidity in financial system to deal with the COVID-19 pandemic.
In a tweet, the Finance Minister also welcomed RBI Governor Shaktikanta Das’ statement that the macro economic fundamentals of the Indian economy are sound, and in fact stronger than what they were in the aftermath of the global financial crisis of 2008-09.
“Appreciate @RBI @DasShaktikanta’s reassuring words on financial stability,” she said.
The three-month moratorium on payments of term loan instalments (EMI) and interest on working capital give much-desired relief, she added.
“…Slashed interest rate needs quick transmission,” the Finance Minister said in another tweet.
Meanwhile, welcoming the RBI’s decision to provide three months moratorium on payment of term loans, Commerce and Industry Minister Piyush Goyal said said that amid this hour of need, the “move has provided a much needed relief to people and businesses”.
Besides other measures to help the economy facing lockdown, the RBI announced steps to release primary liquidity of Rs 1,37,000 crore in the banking system and reduced cash reserve ratio (CRR) by 100 basis points with effect from March 28 for one year.-PTI News
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