Shaktikanta Das on Friday announced that there will be a massive 75 basis points cut in repo rate in order to combat Coronavirus pandemic.
The Reverse repo rate reduced by 90 basis points to 4%
“MPC noted that global economic activity has come to a near stand-still as Covid-19 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
One of the important announcement was that all commercial banks and NBFC, are permitted to allow a three month moratorium on payment of installments of all term loans.
75 basis points, which brings the repo rate down to 4.4 per cent from 5.15 per cent. The reverse repo rate has also been reduced by 90 basis points to 4 per cent in a bid to maintain financial stability and revive growth.
RBI Governor said that the outlook remains extremely uncertain at the time and going forward much will depend on how India battles Covid-19 pandemic. ”
He added that he is extremely optimistic. The repo operation upto Rs 1 Lakh Crore to infuse liquidity in the market.
“Commercial banks and NBFC are permitted to allow a three month moratorium on payment of installments of all loans.”
“Indian Banking System is safe and sound”
