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RBI Measures
March 29 , 2020
1491 days
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- The Central bank advanced its Monetary Policy Committee meet due to COVID-19 pandemic.
- This was the 7th Bi-Monthly Monetary Policy Statement of the RBI for the financial year 2019-20.
- The RBI is to inject Rs 3.74 lakh crore into the Indian Economy.
- The repo rate was cut by 75 basis points (bps) to 4.4%, reverse repo rate was cut by 90 bps to 4%.
- RBI rules banks and other institutions such as non-banking financial companies, including housing financiers and other financial institutions to provide a three-month moratorium on all loans.
- The Cash Reserve Ratio was cut by 100 bps to 3% of NTDL (Net Time and Demand Liabilities).
- This would release liquidity worth Rs 1,37,000 crore within banks.
- The central bank's overall liquidity injection stands at 3.2 per cent of GDP.
- RBI is to introduce Net Stable Funding Ratio between April and October, 2020.
- It is the ratio between amount of stable funding available to the amount of stable funding required.
- RBI also allowed banks to restructure the working capital cycle for companies without worrying that these will have to be classified as non-performing assets (NPAs) during the 21-day countrywide lockdown.
- Rs 1.37 trillion will be made available under the emergency lending window called the marginal standing facility (MSF).
- Banks will now be able to borrow 3% of their deposits under this window, up from the current 2%.
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