MUMBAI : Corporate India, which was already battling the effects of a slowing economy before the Covid-19 outbreak brought most businesses to a grinding halt, has welcomed the Reserve Bank of India’s (RBI’s) move to allow a three-month moratorium on loans and a cut in the repo rate by 75 basis points.
These steps are expected to help the domestic industry tide over the turbulent period, said senior company managers. The measures announced by RBI governor Shaktikanta Das on Friday included a three-month moratorium on instalment payments on all term loans and interest on working capital loans. “Given that the current lockdown is expected to have a negative impact on the cash flows of companies, the moratorium on repayments of term loans will