Highlights of RBI presser: Shaktikanta Das gives economy big boost to fight off corona impact
In a press conference today called at a very short notice, the Reserve Bank of India Governor Shaktikanta Das on Friday said the central bank will ensure adequate liquidity in the system to ease the financial stress caused by the Covid-19 pandemic. The Reserve Bank of India cut its reverse repo rate by 25 basis points on Friday, in a bid to push banks to deploy excess funds within the system toward lending, and help revive growth. Here are the highlights of what Governor said:
Economic Growth
Economic activity came to standstill during lockdown: RBI Governor Shaktikanta Das. Economic growth in India likely at 1.9 pct; normal monsoon may boost rural demand, Das added. IMF projection of 1.9% GDP growth for India is highest in G20, he explained. India is expected to post sharp turnround in 2021-22, says RBI Governor quoting IMF projection, he averred. (Photo: Reuters)
Reverse repo rate
RBI cuts reverse repo rate from 4% to 3.75%, says Governor Shaktikanta Das. He added that Repo rate remains unchanged. The central bank kept its benchmark repo rate unchanged at 4.40%. (Photo: Reuters)
Mobile banking operations
No downtime of internet or mobile banking during lockdown; banking operations normal, says RBI Governor. Banks, financial institutions have risen to occasion to ensure normal functioning during outbreak of pandemic, he added. (Photo: Reuters)
Loans By Banks
90-day NPA norm not to apply on moratorium granted on existing loans by banks, says RBI Governor Shaktikanta Das. (Photo: Reuters)
Liquidity
Surplus liquidity in banking system has increased substantially as result of central bank actions, said RBI Governor. Banks not to make any further dividend payout in view of financial difficulties arising from Covid-19, he added. LCR requirement of banks brought down to 80% from 100%; to be restored in phases by April next year, he averred. LTRO-2.0 to involve Rs 50,000 cr to begin with, he explained. RBI to announce new measures to maintain adequate liquidity in system, facilitate bank credit flow, ease financial stress, RBI Governor said. (Photo: Reuters)
Exports
Contraction in exports in March at 34.6% much more severe than global financial crisis of 2008-09, says RBI Governor Shaktikanta Das. (Photo: Reuters)
States
Ways and means limit of states raised to help them, not bunch up their borrowing plans, says RBI Governor Shaktikanta Das. (Photo: Reuters)