Earlier, the RBI had reduced the repo rate to a 15-year low of 4.40 per cent by announcing a steep cut of 75 basis points on March 27, only two days after the national lockdown was imposed
Addressing the media for the second time since the Narendra Modi government imposed a national lockdown on March 25, RBI Governor Shaktikanta Das announced a reduction in reverse repo rate by 25 basis points from 4 per cent earlier to 3.75 per cent now. The reduction in reverse repo rate is one of a slew of announcements made by the RBI governor today. This was his first address since the lockdown was extended till May 3 by the Prime Minister. “The mission is to minimise the epidemiological damage in the country due to coronavirus. I want to convey the RBI’s resolve and the way forward,” said the RBI governor.
Here are the additional measures announced by the RBI governor in his address today:
- Liquidity management: Will undertake TLTRO 2.0 operations. LTRO of Rs 50,000 cr to begin with in many tranches for NBFCs
- 50% of the funds in TLTRO 2,0 is for small and medium-sized NBFCs
- A special Rs 50,000 crore refinance facility for Nabard (RS 25,000 crore), Sidbi (Rs 15,000 crore) and NHB (Rs 10,000 crore)
- 60% of ways and means advances allowed to states until September 30, 2020
- NPA classifications will exclude the three-month moratorium period till May-end
- NBFCs allowed to grant relaxed NPA classification to their borrowers…
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