After the Prime Minister Narendra Modi extended the coronavirus lockdown period till May 3, Reserve Bank of India (RBI) Governor Shaktikanta Das made some announcements
Reserve Bank of India is following the impact in India Deeply. RBI will take necessary action to ensure to bring back the economy. India sets to post short economic turnaround., mention that Global economic loss crossed $9 Trillion.
Indian economic growth is the highest among G20 Nations.
ShaktiKant Das assured GDP growth rate 7.4% during the 2020 – 2021.
- Das announces Rs 50,000 crore booster package for small and medium-sized industries to recover from the lockdown
- It been decided to reduce the fixed reverse repo rate under liquidity adjustment facility (LAF) by 25 basis points from 4% to 3.75%, with immediate effect,
- IMF Economic Counsellor has named the crisis as ‘The Great lockdown’ estimating cumulative loss to global GDP over 2020-21 at around 9 trillion US dollars, which is greater than the economies of Japan & Germany combined.
- India’s foreign exchange reserves continue to remain robust.
- IMF projects sizable reshaped recoveries, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround and resume its pre-Covid, pre-slowdown trajectory by growing at 7.4% in 2020-21.
- Banks will need to maintain additional provisioning of 10% on standstill accounts
- Government is expected to announce a financial relief package and relief measures to benefit workers, MSMEs, service sector and other industries
- LCR requirement for banks is reduced from 100% to 80% with immediate effect
- TLTRO auction for Rs 25,000 crore to be conducted from today onwards.
- Banks are prohibited from making dividend payouts until further notice.
- RBI increases WMA limit of state governments by 60%.