Here are important points from RBI governor press conference on Coronavirus:
RBI chief’s presser comes after Centre declares COVID-19 relief package for poor
RBI chief Shaktikanta Das will address media at 10 am, the central bank has tweeted, as economic uncertainty prevails amid nationwide lockdown over coronavirus pandemic. The RBI Governor’s address comes a day after the central government announced Rs 1.75-lakh-crore stimulus package to help the poor and migrants tackle the financial difficulties arising from the coronavirus (COVID-19) outbreak.
RBI cuts repo rate by 75 basis point
The RBI governor Shaktikanta Das announced that the RBI repo rate was cut by 75 basis points during a media briefing on Friday. The cut has been made to encourage banks to give more to business rather than deposit it with RBI. We hope to mitigate the negative effect of COVID-19 on the economy with these efforts
If COVID-19 prolongs, supply chain could get disrupted, says RBI
Shaktikanta Das, RBI Governor on Friday said that if COIV19 case prolongs and the supply chain could get disrupted and it could jeopardise India’s growth. “We hope that drop in crude oil prices will help India,” he said.
Repo rate at 4.20% VS earlier 5.15%, says RBI
The RBI governor announced that the Repo rate stands at 4.20 percent now vs 5.15 percent earlier. He also said: “We are not giving out inflation and growth projection numbers due to the uncertain conditions.”
World may slip into recession, says RBI
The RBI governor on Friday said that there was a rising probability that large parts of the world economy could slip into a recession. He noted that tough times were ahead but they don’t last, ‘only tough institutions do’.
LAF cut to 4%; Reverse repo-rate reduced by 90 basic points, says RBI chief
The RBI on Friday cut LAF by 90 bps to 4 percent. It also announced that the Reverse repo-rate has been reduced by 90 basis points to 4%
India has locked down economic activity. Keeping finance flowing is the ‘paramount objective’ of the RBI, while India has locker down economic activity and financial activity is under severe stress, noted the RBI chief.
MPC says global economy to come to ‘standstill’
The MPC (Monetary Policy Committee) has noted that global economic activity has come to a near stand-still as COVID19 related lockdowns and social distancing in affected countries. “Expectations of a shallow recovery in 2020 from 2019’s decade low in global growth have been dashed,” said the RBI chief.
Cash Reserve Ratio cut by 100 bps to 3%, says RBI governor
The RBI decided to reduce the Cash Reserve Ratio (CRR) of all banks by 100 basis points to 3 percent of Net Demand and Time Liabilities with effect from the fortnight beginning 28 March for a period of 1 year.
The RBI chief said that measures will result in total liquidity injection of Rs 3.74 lakh crore to the system.
3-month moratorium on all loans
The RBI on Friday announced that all banks, lending institutions may allow a three-month moratorium on all loans. He added that lending companies, banks are allowed tom defer interest on working capital repayments by three months.
Banks may also reassess working capital cycle and will not be treated as non-performing assets, he said. Mitigating debt servicing burden to prevent transmission of financial stress to the real economy, provide relief to borrowers said RBI chief Shaktikanta Das.
He also said that a three-month moratorium has been decided on payment of installments of loans outstanding on 1 March 2020.
NSFR deferred to October
Offshore Rupee NDF Market has been growing rapidly, noted the RBI. Net Stable Funding Ratio (NSFR) which was required to be introduced from April 1, 2020, is now defer to October, 2020.
Indian banking system is safe and sound, says Das
The RBI governor assured citizens that the Indian banking system is safe and sound. “In recent past COVID-19 related volatility in stock market has impacted share prices of banks as well resulting in some panic withdrawal of deposits from a few private sector banks.” he said.
He urged people to not panic withdraw their deposits from banks. “Your funds are safe,” he said.
RBI taking measures to ensure liquidity in system, assures governor
The RBI has injected liquidity of Rs 2.8 lakh crore via various instruments equal to 1.4 percent of GDP. “Along with today’s measures liquidity measures equal to 3.2% of GDP. RBI will take continuous measures to ensure liquidity in the system,” said Shaktikanta Das in his address.
Important Updates Lockdown
- World is moving towards biggest economic crisis due to Coronavirus, says IMF
- Coronavirus Update: 24 cases found positive in 1 day in Punjab
- 2 Women Doctors assaulted and accused of spreading COVID-19
- SC directed private labs to make COVID-19 Tests free of cost
- Ludhiana Police shares the price list of Vegetables; Says strict action will be taken against violators
- COVID-19: Doctor treating patients is residing in his car to protect his family
- Police officials quarantined and Station closed where COVID-19 Positive thief was prisoned
- 3 more found Positive in Jalandhar; Punjab in Category 4
- Education Department issued show-cause notice to schools for demanding fees
- This state became the first state to extend the lockdown till 30th April; Details inside
- 7 tested positive in one day in Punjab; Total cases cross 5200 mark
- Punjab and Sind Bank in collaboration with RSETI will be manufacturing face masks
- CM Captain Amarinder Singh ends all Lockdown Extension Rumours
- Corona Disinfection Tunnel: An Automatic Sanitised system inaugrated by DC Pradeep Agrawal
- Kitchlu Nagar, Ldh residents showered flowers on Cops expressing their gratitude
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This state became the first state to extend the lockdown till 30th April; Details inside
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Last rituals of 69-year-old Lady who succumbed to COVID- 19 were performed by Govt Officials; Family refused to take charge
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3 more found Positive in Jalandhar; Punjab in Category 4
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PM on Lockdown: Nobody is saying that lockdown should be lifted. I will again talk to the CMs’
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DC Ldh: If Private Hospitals fails to serve patients then strict action will be taken against them
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Chandigarh: Administration puts a ban on Chewing Gums, Pan Masala for 3 months
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Punjab: COVID-19 cases reach 91 today; 15 from Nizamuddin event found positive
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2-year-old child beats Coronavirus; Doctors said Mother’s milk strengthened his immunity