RBI Governor Shaktikanta Das held a press conference on Friday to deal with the severe economic crisis that has arisen on the economy due to Corona Virus. During the conference, he made many big announcements.
The central bank reduced the Reverse Repo Rate from 4 percent to 3.75 percent and retained the Repo Rate. The Governor said that India’s growth rate is still expected to be positive amidst the forecast of global recession and according to the IMF it will be 1.9 percent.
RBI announced relief for NABARD, SIDBI, and National Housing Bank. The assistance of 50000 crores was announced to NABARD, SIDBI, and National Housing Bank. NABARD will get Rs 25,000 crore under Special Refinance.
50,000 crore in the system through TLTRO
RBI will infuse Rs 50,000 crore into the system through TLTRO. The governor said that ATMs are operating with 91 percent capacity. Apart from this, there is no problem with mobile and net banking.
The RBI has announced new steps to maintain liquidity in the system. New proposals for bank credit flow exemption were considered. Let us tell you that there has been a rapid increase in liquidity after 27 March. Banks will have to maintain provisioning of 10% on still accounts.
RBI Governor’s address to the media https://t.co/uhsojdIeSF
— ReserveBankOfIndia (@RBI) April 17, 2020
India’s GDP growth rate is expected to be 1.9 percent
Das has said that the global economy could go into a huge recession. He also said that macroeconomic activity declined after March 27. The governor expected India’s GDP growth rate to be 1.9 percent.
Significantly, the services PMI declined in March. The export situation in March 2020 has also been much worse. He said that despite the lockdown, the sowing situation in the agriculture sector has been better.
Therefore, there is a hope of better demand from rural areas than normal monsoon estimates. Apart from this, banks and cooperative banks will not pay any dividend.
If there is a delay in the realty project due to any reason that cannot be controlled, then NBFCs can extend the loan for 1 year.