RBI mission is to prevent damage from corona virus – Reduces reverse repo rate by 25bps… extra liquidity in NBFC, Micro Finance
· Proposes to – adequate liquidity in the banking systems – Long term repo operation targeted Rs50000cr – TLTRO should be invested in papers NBFC
· Refinance for banking institution, NBFC, Micro-finance
· To give Rs50000cr special refinance to Nabard, SIDBI, NHB
· Reduced reverse repo rate by 25bps to 3.75%
Here are the key points from the RBI governor's address:
· Covid-19: RBI has been very proactive and monitoring the situation very closely
· On IMF projection: India is expected to post sharp turnaround in 2021-22
· Banks have ensured proper functioning, their support is praise-worthy
· Frontline workers (doctors/nurses/social) have shown a great work
· This is the RBI governor's second press briefing since the Covid-19 outbreak. In his previous address on March 27, he had announced a rate cut of 75 basis points (bps).
· The extension of the lockdown till May 3 has triggered fresh demands for a stimulus as companies are finding it difficult to pay salaries and meet other costs because of the loss of a large part of their revenue.
· Monitoring evolving situation very closely, Banks, Finance companies ensured normal functioning and RBI monitoring situation developing out of Covid-19 outbreak.
