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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


Apr 17, 2020

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