NEW DELHI: Reserve Bank of India (RBI) governor Shaktikanta Das on Friday announced a 75 basis points cut in its benchmark Repo Rate to deal with the impact of deadly coronavirus outbbreak on the economy.
Here are the top updates from the RBI’s unscheduled monetary policy meet:
- Policy repo rate has been reduced by 75 basis points from 5.15 per cent to 4.4 per cent
- Reverse repo rate reduced by 90 basis points to 4 per cent
- Monetary Policy meet scheduled for March 31-April 3 was advanced to March 25-27
- Monetary policy committee voted 4:2 majority to cut repo rate by 75 basis points
- Reverse Repo Rate cut more so that banks are incentivised to lend: RBI governor
- Cash Reserve Ratio (CRR) of all banks have been reduced by 100 basis points to 3 per cent of net demand and time liabilities with effect from the fortnight beginning March 28 for a period of 1 year.
- All lending institutions are permitted to allow 3-month moratorium on payment of term loan installments: RBI governor
- RBI to inject liquidity worth Rs 3.74 lakh crore into the system
- Monetary policy committee refrained from giving out growth, inflation outlook for coming fiscal on uncertain outlook.
- India has locked down economic activity and financial markets are under severe stress.
- Finance is the lifeline of the economy, keeping it following is the paramount objective of the Reserve Bank of India at this point of time: Shaktikanta Das
- Moratorium on term loan, deferring of interest on working capital will not be classified as default, not to impact credit history of borrower: RBI
- Global slowdown can deepen with adverse implications for the country: Das
- Slump in crude oil prices upside for India; foodgrain prices may soften further on back of record production: RBI governor
- COVID-19 related volatility in stock market has impacted share prices of banks as well resulting in some panic withdrawal of deposits from a few private sector banks.
- It would be fallacious to link share prices to the safety of deposits. Depositors of commercial banks including private sector banks need not worry on the safety of their funds: RBI governor
- Banking system in India safe; deposits safe in private bank; public should not resort to panic withdrawal: Das
- RBI governor says all instruments — conventional and unconventional — are on table to support financial stability and revive growth.