POLITICS

P Chidambaram Terms RBI’s Decision On EMIs As ‘Ambiguous’, ‘Half-Hearted’

Mumbai: Former Union Finance Minister P Chidambaram called the Reserve Bank of India (RBI) direction on defining equal monthly instalments (EMIs) as “unclear” and “half-hearted”.

The senior Congress leader further said that the EMI dates would be postponed automatically.

Taking to Twitter, Chidambaram said, “I welcome the RBI’s decision to cut the repo rate and measures to provide more liquidity. However, the RBI’s direction on deferment of EMI dates is ambiguous and half-hearted. The demand is that all EMI due dates must be automatically deferred.”

“I had suggested that all due dates falling before June 30 may be deferred till June 30. Borrowers have been made dependent on the bank concerned and will be disappointed,” he said in another tweet.

https://twitter.com/PChidambaram_IN/status/1243417868303122434

His statement comes after RBI slashed the key repo rate by 75 basis points to 4.4 per cent due to the economic slowdown amid the outbreak of coronavirus.

Also Read: PM Narendra Modi Welcomes RBI’s Decisions To Safeguard Economy From Coronavirus Impact

The reverse repo rate now stands at 4 per cent, down by 90 basis points, said RBI Governor Shaktikanta Das adding this has been done to make it unattractive for banks to passively deposit funds with the central bank and instead lend it to the productive sectors.

Follow us on TwitterInstagram and like us on Facebook for the latest updates and interesting stories.

Show More

Leave a Reply

Back to top button