Breaking! RBI Governor announces relief measures
- IndiaGlitz, [Friday,April 17 2020]
RBI Governor Shaktikanta Das has on Friday announced certain relief measures to help the economy through the banking sector.
He said that it has been decided to provide special refinance facilities to the tune of Rs 50,000 Cr to National Bank for Agriculture & Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), and National Housing Bank (NHB) to enable them to meet sectoral credit needs.
Regarding rates, 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.
Long-term repo operations of Rs 50,000 Cr announced in the first tranche for microfinance lenders and NBFCs.
For accounts for which lending institutions decide to grant moratorium or deferment and which were standard as on 1 Mar 2020, the 90-day NPA norm will exclude moratorium period; there will be an asset classification standstill for such accounts from Mar 1-May 31.
Boosting the finances of States:
Ways and Means Advances limits of States has been increased by 60% over and above the limit as on March 31, 2020, to provide greater comfort to States to undertake COVID-19 efforts and to better plan market borrowing programme.
Exports are suffering big-time:
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, Das said.