RBI Governor Shaktikanta Das addressed the media in the second such address by RBI during the lockdown. RBI has announced measures to boost the economy towards recovery.
The RBI address comes a day after Prime Minister Modi met Finance Minister Nirmala Sitharaman to discuss the economic situation in the country following the prolonged lockdown due to the coronavirus pandemic.
Here are highlights from RBI Governor Shaktikanta Das’ media address
- Banks not to make any further dividend payout in view of financial difficulties arising from COVID-19: RBI Governor
- Loans provided by NBFCs to commercial real estate to get some relief. This is to ease NBFCs and the real estate sector. New measures shall be announced as and when the need arises: Governor Shaktikanta Das
- The LCR requirement of scheduled commercial banks being brought down from 100 per cent to 80 per cent with immediate effect. This shall be restored to 90 per cent by October 2020 and 100 per cent by April 2021: Governor Shaktikanta Das
- Period of resolution plan for NPAs to be extended by 90 days: Governor Shaktikanta Das
- Banks to maintain higher provision at standstill, which can be adjusted later for actual slippages: Governor Shaktikanta Das
- We recognise that COVID-19 has challenged the ability of borrowers to repay. Thus the 90-day MPA norm shall exclude the moratorium period: RBI Governor Shaktikanta Das
- Cashflow of households and businesses stands affected: RBI Governor Shaktikanta Das
- Reverse repo rate is being reduced by 25 bps from 4 per cent to 3.75 per cent under Liquidity adjustment facility (LAF): Governor Shaktikanta Das
- RBI undertook three long-term repo operations (TLTRO) to ease liquidity constraints. The TLTRO option of Rs 25000 crore is to be conducted today (April 17): Governor Shaktikanta Das
- The services PMI contracted due to a sharp downturn due to the hit to export. The contraction in exports in March is at 34.6 per cent. It is much more serious than during the GFC: Governor Shaktikanta Das
- Around 25-30 per cent sharp decline in electricity demand due to coronavirus: RBI Governor Shaktikanta Das
- Automobile production and sale declined sharply in March. Services PMI declined into contraction in Mar’20 due to export business: RBI Governor Shaktikanta Das
- These are early developments and bode well for rural demand. While the situation more sombre in other production sectors the COVID-19 impact is not captured in IIP data: RBI Governor Shaktikanta Das
- On April 15, the Indian Meteorological Department (IMD) has forecast a normal southwest monsoon. Rainfall expected at 100 per cent of long term average: Governor Shaktikanta Das
- Pre-monsoon Kharif sowing has been aggressive. Paddy is up by 37 per cent in April vs last year: Governor Shaktikanta Das
- RBI has injected 3.2 per cent of GDP into the economy to tackle liquidity situation: Governor Shaktikanta Das
- India expected to show a sharp turnaround post the COVID-19 crisis. India expected to post a sharp turnaround in FY22 with 7.4 per cent growth as per IMF. India expected to post a sharp turnaround in 2021-2022: Governor Shaktikanta Das
- Global financial markets remain volatile; crude oil prices remain in flux. Crude oil prices remain in a state of flux despite production cuts by OPEC+India is expected to post sharp turnaround by growing at 7.4 per cent in FY22: Governor Shaktikanta Das
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- RBI has injected 3.2 per cent of GDP into the economy to tackle liquidity situation: Governor Shaktikanta Das
- India is amongst the handful of countries to have positive GDP growth. India among a handful of counties with positive growth this year as per IMF: Governor Shaktikanta Das
- Macroeconomic situation has deteriorated. IMF says the global economy may plunge into the worst recession since great: Governor Shaktikanta Das
- Banks and financial institutions have risen to the occasion and provided services- their efforts are praiseworthy. Banks and financial institutions have risen to the occasion and ensured services continue: Governor Shaktikanta Das
- Deepest appreciation to health workers, police staff and other service providers at the frontline: Governor Shaktikanta Das
- India is estimated to have the highest growth among G20 countries as per IMF: Governor Shaktikanta Das
- In this environment, RBI has been very proactive. Almost every second or third day, RBI has been coming out with announcements. Want to convey resolve of RBI and the way forward: Governor Shaktikanta Das
- Humanity faces a trial of its time with COVID pandemic. Our Mission is to do whatever it takes: RBI Governor Shaktikanta Das
- Since my last address on March 27, the microeconomics and financial landscape has deteriorated in some areas: RBI Governor Shaktikanta Das
- Reserve Bank of India has been very proactive. Have been coming out with announcements: Governor Shaktikanta Das
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