The BJP on Friday hailed Reserve Bank of India's decision to cut the benchmark interest rate by 75 basis points to 4.4 per cent, among other decisions, in its Monetary Policy Committee meet, with Prime Minster Narendra Modi calling it 'giant steps' to safeguard the economy from the impact of coronavirus.

Taking the Twitter, Modi wrote: 'The announcements will improve liquidity, reduce cost of funds, help middle class and businesses.'

The RBI put on hold EMI payments on all term loans for three months and cut interest rate by steepest in more than 11 years as it joined the government effort to rescue a slowing economy that has now got caught in coronavirus whirlwind.

The central bank cut repo to 4.4 per cent, the lowest in at least 15 years. Also, it reduced the cash reserve ratio maintained by the banks for the first time in over seven years. CRR for all banks was cut by 100 basis points to release Rs 1.37 lakh crore across banking system.

The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor.

Describing RBI's decisions as progressive and timely, BJP president J. P. Nadda said the announcements will help the middle class and strengthen economy.

'Our Government is taking all necessary actions to help the citizens in this difficult time. Yesterday, Gov announced relief package. Today, in another important step RBI has taken many important decisions to give support and stability to Indian economy,' he tweeted.

Noting that the central bank has slashed repo rate, reverse repo rate and cash reverse ratio to strengthen economy, he said it has also helped the middle class by giving moratorium of three months and also waived interest on EMIs.

'I welcome these progressive and timely measures,' the BJP president added.

Finance minister Nirmala Sitharaman asked banks for 'quick transmission' of slashed interest rate as the RBI cut the key lending rate sharply by 75 basis points to boost liquidity in financial system to deal with the COVID-19 pandemic.

In a tweet, the finance Minister also welcomed RBI governor Shaktikanta Das' statement that the macro economic fundamentals of the Indian economy are sound, and in fact stronger than what they were in the aftermath of the global financial crisis of 2008-09.

'Appreciate @RBI @DasShaktikanta's reassuring words on financial stability,' she said.

The three-month moratorium on payments of term loan instalments (EMI) and interest on working capital give much-desired relief, she added.

'...Slashed interest rate needs quick transmission,' the Finance Minister said in another tweet.

Meanwhile, welcoming the RBI's decision to provide three months moratorium on payment of term loans, commerce and industry minister Piyush Goyal said that amid this hour of need, the 'move has provided a much needed relief to people and businesses'.

'Welcoming @RBI's move to provide 3 months moratorium on payments of term loan instalments (EMI) and interest on working capital,' he said in a tweet.

Union minister Prakash Javadekar said the RBI's measures to help businesses tide over the economic crisis in the wake of the coronavirus outbreak would boost economic activities.

'.@narendramodi government's historical decisions in succession. Three months moratorium on repayment of #EMI will help all home buyers, vehicle buyers and other customers. #IndiaFightsCorona #StayHomeStaySafe #RBIActs,' Javadekar said on Twitter.

'Steps announced by #RBI will reduce interest burden on businesses/industries and will boost economic activities,' the minister, who holds multiple portfolios including Information and Broadcasting, said in another tweet.