
RBI Governor Shaktikanta
Das announces a new set of regulatory measures to deal with financial
challenges posed due to COVID-19. Speaking on the pandemic crisis, Das said:
-- IMF Economic Counsellor
has named it 'The Great lockdown' estimating cumulative loss to global GDP over
2020-21 at around 9 trillion US dollars, which is greater than the economies of
Japan & Germany combined.
-- Contraction in exports
in March 2020 at 34.6%, turned out to be much more severe than during the
Global Financial Crisis. However, amidst all this, the level of Forex Exchange
Reserves which we have continue to be robust.
-- It has been decided to
reduce the fixed reverse repo rate under liquidity adjustment facility (LAF) by
25 basis points from 4% to 3.75%, with immediate effect. Reverse repo rate
is the rate at which the RBI borrows money from commercial banks. A decrease in
the reverse repo rate will increase the money supply.
-- 90-day NPA norm not to
apply on moratorium granted on existing loans by banks.
-- Banks not to make any
further dividend payout in view of financial difficulties arising from
Covid-19.
-- CPI inflation declined
in March; inflation is on a declining trajectory.
-- Loans given by NBFCs to
real estate companies to get similar benefit as given by scheduled commercial
banks.
-- RBI will monitor
evolving situation continuously, use all its tool to deal with pandemic
fallout.
-- LCR requirement of banks
brought down to 80% from 100%; to be restored in phases by April next year.
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