Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period, the RBI had said.
Here's how borrowers are likely to gain from RBI's rate cut, subject to banks, non-banking financial companies passing on the benefits to customers
The Reserve Bank of India is expected to hold a media interaction later in the day today. It is widely expected that the central bank will cut rates and announce measures to boost sentiment.
The RBI held its benchmark repurchase (repo) and reverse repo during its February 6 monetary policy meeting at 5.15 per cent and 4.90 per cent respectively
Das said he hoped a recent trade deal between the United States and China would hold and not be reversed
The 6-member Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted to hold the key repo rate at 5.15% and reverse repo rate at 4.90%
RBI has delivered 135 basis points of interest-rate easing this year, but lenders have only transmitted a fraction of that to borrowers.
RBI has cut interest rates four times this year
Whilst the noise on feasibility of budget numbers and risks on sovereign borrowing would persist in the near term, the budget outcome has certainly eased the job for RBI MPC to ease rates further
They are going to cut rates in August and again later, mainly due to low growth and weak inflation, said an economist
US Fed policy meet this week might also influence trading sentiment at the domestic bourses
Upside risks to inflation and a need to maintain financial markets' stability will keep monetary policy on a tightening bias.
The RBI expects growth to hit 7.4 percent in the year to March 2019 amid improved demand, broadly in line with the market consensus
Only fundamentals should dictate such decisions, he said
While Budget 2018 has hiked minimum support prices, the inflationary impact is likely to be muted as ruling wholesale prices are already higher than the revised MSP
But economists also say from now on minutes of the six-member Monetary Policy Committee meeting will make interesting reading
The Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel, will meet on December 5 and 6.
RBI has yet to accept that inflation in India is in a secular downtrend