Reserve Bank of India (RBI) Governor Shaktikanta Das addressed the media for a second time since the COVID-19 outbreak. Here's a round-up of the key announcements.
The announcements covered four key points:
Maintaining liquidity in the system
Facilitating and incentivising bank credit flows
Easing financial stress
Enabling formal working of markets
NPA classification will now not include the 90- day moratorium on loans.
Another liquidity boost through TLTRO 2.0 worth Rs 50,000 crore to begin with for NBFCs, HFCs and MFIs
Special refinance facilities of Rs 50,000 cr to NHB, SIDBI and NABARD
LCR requirement for SCB to be brought down from 100 percent to 80 percent with immediate effect
Fixed reverse repo rate under LAF cut by 25 bps to 3.75 percent from 4 percent with immediate effect
For all accounts where moratorium or deferment has been applied, there would be an asset classification standstill
DCCO delayed for reasons beyond the control of promoters, can now be extended by one year without asset classification downgrade. This relief is now also allowed for NBFCs.
For large accounts under default, additional provisioning of 20 percent is required for not implementing resolution in 180 days. This has now been relaxed.
Banks shall not declare dividends until further notice
Apr 17, 2020