The RBI, on May 22, 2020, extended the moratorium on all term loans, including home loans, by three months, till August 31, while also announcing a 40-basis point reduction in the repo rate
To support economic growth, which is headed towards a contraction in the wake of the Coronavirus pandemic, the Reserve Bank of India (RBI), on May 22, 2020, reduced the repo rate to 4%. The 40-basis point cut in the repo rate, at which the RBI lends money to scheduled banks in India, comes two months after the banking regulator cut its key lending rate by 75 basis points, to bring it down to 4.40%.