The Reserve Bank of India (RBI) on Friday put on hold EMI payments on all term loans for three months.
The apex bank also decided to cut interest rate, which is the steepest in more than 11 years.
The decisions were taken to with an effort to rescue the slowing economy, which has been jeopardised in the wake of coronavirus pandemic.
In other decisions, the RBI cut repo to 4.4 per cent, which is the lowest in the last 15 years.
The RBI also decided to reduce the cash reserve ratio (CRR) maintained by the banks and accordingly, the CRR for all banks has been cut by 100 basis points to release Rs 1.37 lakh crore across banking system.
The RBI also cut the reverse repo rate by 90 bps to 4 per cent.
The measures announced a day after the Centre unveiled a Rs 1.7 lakh crore package of free foodgrains and cash doles to the poor in the wake of 21-day nationwide lockdown.