RBI 3-Month EMI Moratorium to Provide Rs 2.1 lakh crore Liquidity to Corporates

Published on April 22, 2020
Current Context: The Reserve Bank of India has announced a moratorium, in which the bank will provide Rs 2.1 lakh crore liquidity to the corporate sectors who are ready to avail the offer.
RBI 3-Month EMI Moratorium to Provide Rs 2.1 lakh crore Liquidity to Corporates
  • "The moratorium announced by RBI on interest and principal obligations due between March 1 and May 31, 2020, would tantamount to a liquidity breather of Rs 2.10 lakh crore if all companies opt for it," the Crisil rating agency said in a report. The findings by Crisil Ratings are based on an assessment of 9,300 of its rated non-financial sector companies across 100 sectors.
  • However, the IT consulting companies and automobile companies will be getting low leverage and will be getting less from the moratorium, as per the report. That is because the continuing slowdown in the automobile industry and a complete halt in operations because of the lockdown have severely impaired their liquidity.
  • And the corporate sectors from electricity generation, agricultural products, textiles and fertilizers, and trading will be benefited from the moratorium with an account for nearly 47% of the total breather.

Question:

Q.1 How much rupees of liquidity will be granted by RBI to corporate sectors as per the 3 month EMI moratorium released by the Central Bank?
a. Rs 2.2 lakh crore
b. Rs 2.1 lakh crore
c. Rs 2.3 lakh crore
d. Rs 2.4 lakh crore

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