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