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This is an archive article published on April 17, 2020

90-day NPA norm to exclude lockdown days, Rs 50,000 crore for NABARD: Here’s what RBI announced today

Reverse Repo Rate 2020: Governor Shaktikanta Das said the central bank is monitoring situation developing out of COVID-19 outbreak as he announced a string of relief measures for the stressed banking and financial sector.

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RBI Governor Shaktikanta Das. (Express file photo)

In a slew of measures to boost the economy amid the coronavirus pandemic and subsequent 40-day lockdown, the Reserve Bank of India (RBI) Friday reduced the reverse repo rate by 25 basis points, from 4 per cent to 3.75 per cent, to encourage banks to invest. The policy rate remains unchanged.

Governor, Shaktikanta Das, said the central bank is monitoring situation developing out of COVID-19 outbreak as he announced a string of relief measures for the stressed banking and financial sector.

“The International Monetary Fund (IMF) has projected the Indian GDP at 7.4% in 2020-21,” he told reporters in the 35-minute briefing.

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Here is a look at some of the key points that the RBI head made today:

* India sharp turnaround, IMF projects Indian GDP at 7.4% in 2021-22

* West Bengal, Telangana, Odisha, Assam, Chhattisgarh leading in sowing despite lockdown

* Forex reserves robust at $476.5 billion on April 10 (11.8 months of imports)

* ATMs at 81% of capacity

* IMF projection of 1.9% GDP growth for India is highest in G20

* India is expected to post sharp turnround in 2021-22

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* Impact of Covid-19 not captured in IIP data for February

* Automobile production, sales declined sharply in March; electricity demand has fallen sharply

* Contraction in exports in March at 34.6% much more severe than global financial crisis of 2008-09

* Surplus liquidity in banking system has increased substantially as result of central bank actions

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* No downtime of internet or mobile banking during lockdown; banking operations normal

* RBI liquidity injection at 3.2% of GDP from February 6 till March 27

* LTRO-2.0 to involve Rs 50,000 crore to begin with

* Rs 50,000 crore special finance facility to be provided to financial institutions such as Nabard, Sidbi, NHB

* Repo rate remains unchanged

* RBI cuts reverse repo rate from 4% to 3.75%

* 90-day NPA norm not to apply on moratorium granted on existing loans by banks

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* Banks not to make any further dividend payout in view of financial difficulties arising from Covid-19

* Liquidity Coverage Ratio requirement of banks brought down to 80% from 100%; to be restored in phases by April next year

* 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

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* WMA for states increased by 60% over and above the level as on March 30

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