Reserve Bank of India’s Governor Shaktikanta Das holds a press conference with regard to the Economic Situation.
- Economic Situation is being monitored closely.
- Macro Economic landscape deteriorating
- Global Financial Markets remain volatile
- Crude oil prices remain
- India set to post sharp economic turnaround
- 7.4% economic growth expected in F.Y 2020-2021
- Manufacturing index lowest in last 4 months
- Surplus liquidity in banks
- FOREX Reserves remain robust
Further Measures by RBI in view of COVID 19:
- Liquidity ManagementTargeted
- Long Term Operations (TLTRO) 2.0
- Refinancing Facilities for All India Financial Institutions (AIFIs)
- Liquidity Adjustment Facility: Fixed Rate Reverse Repo Rate
- Asset Classification
- Extension of Resolution Timeline
- Distribution of Dividend
- Liquidity Coverage Ratio
- NBFC Loans to Commercial Real Estate Projects
- Incentivise Credit Flow
- Ease Financial Stress
- Re-Financing Facility to All India Financial Institutions
- Special Refinance facilities to NABARD, SIDBI, NHB; Rs 50,000 Crore to be provided
- Reverse repo rate reduced by 25 basis points
- WMA Limit to states increased by 60 percent
- Regulatory Measures Announced
- Distribution of Dividend
- LCR Requirement for Scheduled Commercial Banks is being brought to 80% from 100%
- 90 day NPA Norm to exclude the lockdown period
RBI had announced an increase in the WMA limit of the States on April 1, 2020. With a view to providing greater comfort to the States to undertake COVID-19 containment and mitigation efforts and enable them to better plan their market borrowings, it has been decided to
- increase the WMA limit of the States by 60% over and above the level as on March 31, 2020
- The increased limit will be available till September 30, 2020.
To read the detailed statement of RBI Governor, please click the link below: