RBI outcome meeting today … 10-year G-Sec Yield declined 3bps
· Reserve Bank of India governor Shaktikanta Das today announced TLTRO 2.0 of ₹50,000 crore to ensure that different segments of financial markets such as NBFCs and MFIs to get enough liquidity. The RBI is open to increasing this amount beyond ₹50,000 crore, the governor said. At least 50% of amount must go to mid and small sized NBFCs and MFIs, the RBI chief said.
· To provide special refinance facilities of Rs 50,000 crore to NABARD, SIDBI, NHB to address sectoral credit needs. Of this, NABARD will receive Rs 25,000 crore, SIDBI Rs 15,000 crore and NHB Rs 10,000 crore.
· RBI said banks have to buy 50% of these incremental holdings from primary market issuances and the rest from the secondary market, including from mutual funds and non-banking finance companies.
· CPI inflation declined in March; inflation is on a declining trajectory, says RBI Governor Shaktikanta Das.
· The Reserve Bank of India (RBI) on Friday asked scheduled commercial banks and co-operative banks not to make any dividends for the financial year ending March 2020 and said it will review this stand in
September. RBI Governor Shaktikanta Das today said this was being done to conserve cash in view of the challenges posed by covid-19.
The central bank today also cut the reverse repo rate by 25 basis points to 3.75% while announcing liquidity steps for non-banking finance companies (NBFC). It kept the repo rate unchanged at 4.4%.
