From deferring EMIs to 75 bps rate cut, here are the key measures taken by RBI
- On March 27, Reserve Bank of India (RBI) Governor Shaktikanta Das announced a massive 75 basis points cut in repo rates as a measure to counter the economic slowdown caused by the COVID-19 pandemic. Here are key takeaways from RBI’s press conference.
- Slashed repo rate by 75 basis points cut to 4.40 percent.
- Reverse repo rate has been reduced by 90 basis points to 4.4 percent.
- Liquidity adjustment facility cut by 90 basis points to 4 percent.
- Cash Reserve Ratio (CRR) for all banks cut by 100 basis points to 3 percent of net demand and time liabilities (NDTL).
- Three-month moratorium has been announced on payments of instalments of loans outstanding as of March 1
- Banks are allowed to restructure the working capital cycle for companies without worrying about it to be classified as NPA.
- All measures will result in total liquidity injection of Rs 3.74 lakh crore to system.
- Priority is to undertake strong and purposeful action to protect domestic economy.