RBI Governor Shaktikanta Das addressed the nation on Friday and briefed the nation with a plan to help the industrial sector; country from the coming economic crisis which will indeed be effective for the India’s impede economy due to the nationwide lockdown. This was the second time RBI governor addressed the media since the lockdown was imposed.
In his address he informed that even after lockdown and global economic crisis IMF project to 1.9% GDP growth for India which is the highest in G20. ATM operations stood at 91%, no downtime on internet and mobile banking. India is expected to post sharp turnaround in 2021-22, says RBI Governor quoting IMF projection.
To maintain adequate liquidity in the system, we have decided to take additional measures.
Das informed that “Automobile production, sales declined sharply in March; electricity demand has fallen sharply”. While RBI is taking new measures to maintain adequate liquidity in system, facilitate bank credit flow, ease financial stress.
• RBI to give Rs 50,000cr liquidity support- Rs 25,000cr for National Bank for Agriculture and Rural development (NABARD), Rs 15,000cr for Small Industries Development Bank of India (SIDBI), while Rs 10,000rc for National Housing Bank (NHB).
• RBI reduced reserve repo rate by 25 basis points to 3.75% under Liquidity adjustment facility (LFA).
• Liquidity coverage ratio (LCR) has been brought down to 80% from 100% which will be restored in phases.
• New measures aimed at maintaining adequate liquidity in system, facilitate bank credit flow, ease financial stress.
• Sensex rose over 1,000 points before RBI’s announcement.
• Rupee rises 29 paise to 76.58 against US dollar in early trade
Earlier on March 27 RBI Governor announced that-
• RBI puts a pause on EMIs for 3 months
• Policy Repo rate cut by 75 bps from 5.15% to 4.4%
• Reverse repo rate cut by 90 bps to 4%
• Liquidity infusion of Rs 3.74 lakh cr via the three steps announcement – LTRO, CRR and MSF