Mumbai: Reserve Bank of India Governor Shaktikanta Das announced a reduction in the repo and reverse repo rate on Friday.
“The repo rate has been reduced by 75 basis points to 4.4 per cent. The reserve repo rate has been reduced by 90 basis points to 4 per cent,” Das said addressing the media.
The decision for “a sizeable reduction” in the policy repo rate, according to the RBI Governor was taken to “revive growth and mitigate the impact of COVID-19 and ensure financial stability.” This decision comes a day after Union Finance Minister Nirmala Sitharaman announced a special Rs 1.7 crore relief package to help the poor and migrant workers amid a 21-day nationwide lockdown to mitigate the impact of coronavirus pandemic.
RBI Governor said that, depositors should not resort to panic withdrawal of their deposits. Would urge those with deposits in private banks to not indulge in panic withdrawal. The macros stronger than what it was post the financial crisis, the fiiscal deficit and CAD is much lower and inflation conditions are benign. I remain optimistic despite current challenges. COVID-19 is upon us but this to shall pass. Stay clean, stay safe and go digital
RBI has injected liquidity of Rs 2.8 lakh crore via various instruments equal to 1.4% of GDP. Along with today’s measures liquidity measures equal to 3.2% of GDP. RBI will take continous measures to ensure liquidity in the system
Incremental CCB (capital conservation buffer) implementation deferred from March 30, 2020 to Sep 30, 2020.
He said, offshore Rupee NDF Market has been growing rapidly. Net Stable Funding Ratio (NSFR) was required to be introduced from April 1, 2020. Will defer NSFR implementation to October, 2020.
