FROM RATE CUTS TO LIQUIDITY MEASURES, RBI GOES ALL GUNS BLAZING: A KEY HIGHLIGHTS

RBI Monetary Policy Committee, in a question and answer session on 27th March 2020 cut repo rate by 75 bps to 4.4 per cent. It was the first run through the MPC met outside its every other month meeting schedule. It additionally slices CRR by 100 bps to 3 per cent and permitted a 3-month ban to all banks, monetary establishments on all credits.

Here below RBI Governor Press Highlights:

1. Repo rate reduced by 75 basis points to 4.4%

2. Rev repo reduced by 90 basis points to 4%

3. GDP growth for Q4 19-20 and FY 20-21 to be affected

4. Aggregate demand may weaken

5. Future outlook uncertain and negative

6. CRR reduced by 100 basis points to 3% for 1 year to release 1.37 lakh crores

7. Min daily CRR balance reduced from 90% - 80% till 30/06/2020

8. 3.74 lakh crore liquidity injected

9. 3-month moratorium on payment of instalments of Term Loan outstanding

10. Interest on WC facilities to be deferred by 3 months

11. Such deferment not to be considered for NPA

12. Revised DP calculations by reassessing WC cycle

13. All measures not to effect credit history

14. Total liquidity injection 3.4% of GDP

Author:

eStartIndia Team