Here are the Major Highlights of the Reserve Bank Governor Shaktikanta Das’s address to the media today
- 50% of the funds inwards TLTRO 2,0 is for modest together with medium-sized NBFCs
- 60% of ways together with way advances allowed to states until September 30, 2020
- A especial Rs 50,000 crore refinance facility for Nabard (RS 25,000 crore), Sidbi (Rs 15,000 crore) together with NHB (Rs 10,000 crore)
- ATMs stimulate got worked at 91% capacity during this period.
- Banks volition necessitate to keep additional provisioning of 10 per cent on standstill accounts
- Banks won’t denote dividends until farther notice
- Every information on monsoon, sowing, fertilisers bode good for agri together with rural outlook but province of affairs is sombre inwards other industrial sectors.
- India expected to stage a smart recovery to grow at pre-coronavirus footstep of 7% inwards FY21, according to the IMF
- India is i of the few countries projected to hang on to – maybe tenuously – 1.9% gross domestic product growth, according to the IMF.
- LCR requirement brought downwards from 100% to 80% amongst immediate effect. LCR requirement to endure restored to the previous grade inwards a phased manner
- Liquidity management: Will undertake TLTRO 2.0 operations. LTRO of Rs 50,000 cr to start amongst inwards many tranches for NBFCs
- Loans given yesteryear NBFCs to existent estate companies to instruct like produce goodness every bit given yesteryear scheduled commercial banks
- Macroeconomic landscape has deteriorated since March 27, 2020.
- NBFCs allowed to grant relaxed NPA classification to their borrowers
- NBFCs’ loans to delayed commercial existent estate projects tin endure extended yesteryear a twelvemonth without restructuring
- No downtime has been observed for cyberspace or mobile banking.
- NPA classifications volition exclude the three-month moratorium menses till May-end
- Since March 27, surplus liquidity has increased sharply inwards the banking system.
- The global economic scheme is going through the worst stage since the Great Depression.
- The affect of Covid-19 has non been captured inwards recent IIP data.
- The RBI has taken several steps to ensure normal functioning of banks.
Note : In the concluding coming together on March 27, the RBI had announced a massive ninety bps cutting inwards contrary repo rate, the charge per unit of measurement at which the RBI borrows coin from banks yesteryear lending securities, to ensure surplus liquidity inwards the system. The repo charge per unit of measurement was reduced to a 15-year-low of 4.40 per cent together with was too the steepest cutting since Oct 2004.
New Policy Rates together with Reserve Ratios of RBI 2020 (as on 17th April)
- Repo Rate : 4.40%
- Reverse Repo Rate : 3.75%
- Marginal Standing Facility (MSF) Rate : 4.65%
- Bank Rate : 4.65%
- CRR : 3%
- SLR : 18%