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RBI's Key Measures To Boost The Economy Amid COVID Outbreak
By: Tupaki Desk | 17 April 2020 7:30 AM GMT
In the wake of the second phase of the lockdown in India, Reserve Bank of India Governor Shaltikanth Das has called for a press meet to discuss the situation of the economy which has faced severe losses due to the COVID-19 pandemic.
Mr. Das said that the lockdown has resulted in the loss of 9 trillion dollars to the world GDP and added that the IMF has estimated that the growth rate of India will be 1.9 percent in 2020 which makes the GDP of India highest in the G-20 nations.
He went to say that to boost the liquidity and expand the bank credit flow and to ease the financial stress in India many measures were taken by the Reserve Bank of India(RBI).
To enable more liquidity, that too for the small and mid-sized non-banking finance companies (NBFCs) and micro-finance institutions, the RBI has injected Rs 50,000 crores.
As part of the measures taken by th RBI, the reverse repo was also reduced to 3.75 percent from 4 percent which enables the banks to lend more without deploying funds from the Central bank.
The RBI has also allotted Rs 50,000 crore refinance to all India financial institutions and Rs 25,000 crore to Nabard, Rs 15,000 crore to SIDBI and Rs 10,000 crore to NHB along with increasing the ways and means advances (WMAs) limit to 60 percent.
Mr. Das said that the lockdown has resulted in the loss of 9 trillion dollars to the world GDP and added that the IMF has estimated that the growth rate of India will be 1.9 percent in 2020 which makes the GDP of India highest in the G-20 nations.
He went to say that to boost the liquidity and expand the bank credit flow and to ease the financial stress in India many measures were taken by the Reserve Bank of India(RBI).
To enable more liquidity, that too for the small and mid-sized non-banking finance companies (NBFCs) and micro-finance institutions, the RBI has injected Rs 50,000 crores.
As part of the measures taken by th RBI, the reverse repo was also reduced to 3.75 percent from 4 percent which enables the banks to lend more without deploying funds from the Central bank.
The RBI has also allotted Rs 50,000 crore refinance to all India financial institutions and Rs 25,000 crore to Nabard, Rs 15,000 crore to SIDBI and Rs 10,000 crore to NHB along with increasing the ways and means advances (WMAs) limit to 60 percent.
