RBI Governor Press Conference Highlights

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:

  1. Maintaining liquidity in the system

  2. Facilitating and incentivising bank credit flows

  3. Easing financial stress

  4. 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


Source: https://www.moneycontrol.com/news/business/rbi-governor-press-conference-live-updates-shaktikanta-das-coronavirus-package-rate-cut-cheaper-loans-covid-19-stimulus-moratorium-5157831.html

Apr 17, 2020

1 view
Mindcept-Logo.png

© MINDCEPT CONSULTING

  • Black LinkedIn Icon

DISCLAIMER: The information contained in this website is offered for illustration purposes only and is general information. We make no representations or warranties of any kind (express or implied) with respect to the information, products, services, statements, figures, calculations, plans, images, logos, related graphics and are purely indicative in nature only. Whilst all reasonable care has been taking in providing all information, however, We or / and our related companies or/ and our representatives, consultants or / and our agents accept no responsibility for its completeness, accuracy, reliability, suitability or availability of any information contained herein for any action taken in reliance thereon by any party. Any reliance on information as contained in this website does not constitute an offer, inducement, representation, warranty or contract and may be relied upon at one’s risk and consequences.