- Taxinfo.in
RBI announced additional measures to fight with pandemic Covid19

Key Announcements by RBI Governer on 22/05/2020
1. *Term loan moratorium extended till August 31, 2020* - The loan moratorium will be extended till August 31, 2020. This makes it a six months moratorium.
2. *Deferement of Interest on Working Capital* - Interest on working capital is deferred by another 3 months i.e. till 31st August, 2020.
3. *Conversion of Interest on working capital to interest term loan* - Lending institutions are being permitted to convert the accumulated interest on working capital facilities over the deferment period (up to August 31, 2020) into a funded interest term loan (Repayable before 31st March, 2021).
4. *Margin for Working Capital - Drawing Power* - Lending institutions are being permitted to restore the margins for working capital to the original level by 31st March, 2021.
5. *Reduce repo rate by 40 bps to 4 percent.* Accordingly, Interest rate would be reduced.
6. *Export Credits* - Maximum permissible export credit (Pre and Post Shipments) extended from 12 months to 15 months.
7. *Payment against Imports* - Extension of time limit for making payments against imports from 6 months to 12 months
8. *Support to EXIM Bank* - Facility of Rs 15,000 crore line of credit for 90 days for US dollar swap facility will be provided to EXIM Bank.
9. *Extension of Resolution Timelines* - Deferement or moratorium period shall excluded while calculating 180 days resolution period.
10. *Group Financing* - Group exposure extended from 25% to 30%
10. *Support to SIDBI*- In order to provide greater flexibility of SIDBI, another 90 days extension for the 90-day term loan facilities will be offered.
11. *Assets Classification* - Loan Moratorium shall not have any implications on changes in assets classification, credit history and ageing norms etc.
12. *Trade Impact* - Volume of world trade can shrink by 13%-32% this year.