Refer - The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
· Reserve Bank of India announced that Monetary Policy Committee voted to keep the repo rate — that is the rate at which banks borrow money from the central bank — steady at 5.15 per cent.
· More importantly, the RBI will conduct 1-year and 3-year repos up to an amount of Rs 1 lakh crore.
· Doing this would lead to a substantial reduction in the interest rates charged in the economy. For instance, most home loans are being sold at 8 per cent interest rate; existing customers are actually paying as much as 9 per cent.
· The RBI has announced that any incremental lending (retail loans) by banks for automobiles, residential housing and loans to micro, small and medium enterprises (MSMEs) to automobile.
· The RBI has chosen to hold off CRR for incremental lending in key sectors in an obvious bid to boost credit growth and perk up consumption.
· MSMEs who were struggling pay back their loans were given a one-year extension to “restructure” their loans. This facility has now been extended to MSME loans that had started defaulting.
· RBI has decided to be lenient with MSME defaulters and it hopes that, given some time and leeway, these MSMEs will be able to recover and pay back their dues, especially as the economy improves.
· The RBI has given an additional year before a loan to a real estate project, which has been delayed “for reasons beyond the control of promoters”.
· By giving them an extension, the RBI is hoping that developers would be able to focus on getting fresh funds and finish their projects quickly — thus resolving the whole problem.
Shivangi 5 years
Please review.
IAS Parliament 5 years
Good attempt. Keep Writing.
HB 5 years
please review
IAS Parliament 5 years
Good attempt. Keep Writing.
Priya 5 years
plz review
IAS Parliament 5 years
Try to cut short introduction part and stick to word limit, underline key points. Keep Writing.
