Financial Relief for Businesses and citizens Amid Pandemic

FM has announced medical insurance cover of Rs 50 lakh per health worker.

  • ‘PM Gareeb Kalyan Yojana’ will include cash transfers to the poor and migrants.
  • The ‘Prime Minister Gareeb Kalyan Scheme’ will be of Rs 1.7 lakh crore.
  • Food-related announcements: 80 crore people will come under the ‘Pradhan mantra Gareeb Kalyan Ana Yojana (food scheme)’. Every one under this scheme will get 5 kg of wheat/rice for free in addition to what they are already getting. We will also give one kg of one choice of pulse to each household under this scheme for the next three months. They can take it in two installments also.
  • For farmers: They receive Rs 6,000 per annum through the PM-KISAN scheme. We will now be giving the first instalment upfront. Around 8.69 crore farmer will get immediate benefit out of this.
  • For daily workers: Wage increase under MNREGA will benefit 5 crore families. Wage increase will result in additional income of Rs 2,000 per worker.
  • Poor senior citizens, widows and ‘divyangs’ to receive Rs 1,000 over the next three months.
  • Women Jan Dhan account holders to get Rs 500 per month for the next three months.
  • 8.3 crore families below poverty line will get free LPG cylinders for three months.
  • 63 lakh self-help groups for women in the country. They get up to Rs 10 lakh collateral-free loans right now. We aredoubling that to Rs 20 lakh.
  • Announcements for the organized sector: Centre will pay the EPF contribution both, of the employer and of the employee (12 percent each) for the next three months. This is for all those establishments that have up to 100 employees and 90 percent of whom earn under Rs 15,000 per month. Provident scheme regulations will be amendment to allow non-refundable advance of 75 percent or three months’ wages, whichever is lower. This will benefit 4.8 crore workers who are registered with the EPF.
  • For construction workers: There is a Buildings and Other Construction Workers’ Fund. We are giving directions to states to release those funds.

BI Governor Presser Highlights


  • Repo rate reduced by 75 basis points to 4.4%
  • Rev repo reduced by 90 basis points to 4%
  • GDP growth for Q4 19-20 and FY 20-21 to be affected
  • Aggregate demand may weaken
  • Future outlook uncertain and negative
  • CRR reduced by 100 basis points to 3% for 1 year to release 1.37 lakh crores
  • Min daily CRR balance reduced from 90% – 80% till 30/06/2020
  • 74 lakh crore liquidity injected
  • 3-month moratorium on payment of instalments of Term Loan outstanding
  • Interest on WC facilities to be deferred by 3 months
  • Such deferment not to be considered for NPA
  • Revised DP calculations by reassessing WC cycle
  • All measures not to effect credit history
  • Total liquidity injection 3.4% of GDP


Q: My EMI is due soon. Will the payment not be deducted from my account?

A: The RBI has only allowed banks to allow a moratorium. Individual banks will have to allow suspension of EMIs. The borrower will have to request the bank and show that his or her income has been impacted by the coronavirus disruption. This means that unless you have specific approval from your bank, your EMIs will still be deducted from your account.


Q. Is this a waiver of EMIs or a deferment of EMIs?

This is not a waiver, but a deferment. You will have to pay the EMIs at a later as decided by the bank. The RBI has told banks to have board approved policies in place on moratorium/deferment.


Q: Does the moratorium cover both principal and interest?

A: Yes. It does. If announced by your bank, you can forego payment of your entire EMI, including payment and interest.


Q. What kind of loans does the moratorium cover?

A: The RBI policy statement explicitly mentions term loans, which includes home loans, personal loans, education loans, auto and any loans which have a fixed tenure. The also include consumer durable loans, such as EMIs on mobiles, fridge, TV etc


Q: Does the moratorium cover credit card payments?

A: Since credit cards are defined as revolving credit and not term loans, they are not covered under the moratorium.


Q: I have taken a business loan. Can I not pay my EMI?

A: The moratorium has been allowed on retail loans

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