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Key takeaways and announcements from RBI governor's address over coronavirus crisis
Reserve Bank of India governor Shaktikanta Das addressed the media on Friday amidst the steep fall in the rupee and the continuing volatility in other segments of the financial markets due to the coronavirus pandemic. Das made some significant announcements during the interaction.
We shall cure, we shall ensure, says Das. With this, Das concludes the presser.
As markets lose steam after RBI Governor's presser, Das hints at further stimulus going forth by RBI.Rupee gains 39 paise against US Dollar and trading at 76.47.
The liquidity coverage ratio is the requirement whereby banks must hold an amount of high-quality liquid assets that's enough to fund cash outflows for 30 days.
The liquidity coverage ratio requirement of the banks to be brought down to 80% from the existing 100%. It will be restored in two phases: 90% by October 2020 and 100% by April 2021, says Das.
Period of resolution plan for stressed assets to be extended by 90 days, says Das.
Economic activity has come to a standstill in wake of COVID-19 lockdown. It has effected cash flows of households, says Das.
Reverse Repo rate is the rate at which the Reserve Bank of India borrows funds from the commercial banks in the country. In other words, it is the rate at which commercial banks in India park their excess money with Reserve Bank of India usually for a short-term.
RBI cuts reverse repo rate by 25 bps to 3.75% from 4%.
All India financial institutions like Nabard are facing difficulty in raising finance from markets. They will now be provided Rs 50,000 crore refinancing line: Rs 25,000crore to Nabard, Rs 15,000 crore to SIDBI and Rs 10,000crore to National Housing Bank. They will be charged at the repo rate of 4.4% for this amount.
We have decided to take Targeted Long Term Repo Operations 2, starting with Rs 50,000 crore. As per requirement, we can step it up: Das
Das adds that50% of this amount should go to small-sized NBFCs and MFIs.
Surplus liquidity in banking system has increased substantially as result of central bank actions, says Das.
RBI has taken measures to maintain liquidity in the economy, says Das.
In response to repo auction, the financial conditions in the bond and money markets have eased considerably: Das
Since March 27, the macroeconomic and financial landscape has deteriorated precipitously in some areas, but light still shines through bravely in some others, says RBIGovernor Shaktikanta Das.
Impact of COVID-19 not captured in IIP data for Feb: RBI Governor Shaktikanta Das.
Our data shows that there was no downtime of internet banking, says Das. He adds thatATMs are functioning at 91% capacity.
The contraction in exports is more sever than the Global Financial Crisis: Das
India is expected to post sharp turnround in 2021-22, says Das.
IMF projection of 1.9% GDP growth for India is highest in G20, says RBI Governor Shaktikanta Das
Global financial markets remain volatile. Crude oil also remains volatile. India is among a handful of countries with positive GDP: RBI Governor Shaktikanta Das.
'India is one of the few countries that has the highest growth rate (1.9%) in the G20 countries, according to projections," says RBI Governor.
Rupee gains 24 paise as RBI governor starts press conference.
Since March 27, the macroeconomic situation has deteriorated precipitously in some area, says Das.
Today humanity is facing the trial of its time, as COVID-19 grips the world with its deadly embrace. In this kind of environment Reserve Bank of India (RBI) has been very proactive & monitoring the situation closely, says RBI Governor Shaktikanta Das.
I would like to thank a team of 150 people at RBI who are keeping various functions going on in quarantine away from home, says Das.
RBI Governor thanks bank employees for risking their lives.
Central bank has been monitoring the COVID-19 situation closely, says Shaktikanta Das.
Watch RBI Governor Shaktikanta Das's address here
RBI Governor Shaktikanta Das to address media shortly.
Markets are upbeat before the RBI presser. Indices surge 3.5%.
There were calls that the 75 bps cutwas not sufficient and that RBI could go for more rate cuts and liquidity measures. Many brokerages had said RBI could slash the lending rates by another 100 bps.
The same day, the central bank cut the cash reserve ratio by 100 bps to 3 per cent apart from announcing various measures to boost liquidity in the system.
On March 27, RBI held a historic pre-term MPC (Monetary Policy Committee) meeting wherein the repo rate was cut by a record 75 basis points. The repo rate was reduced to a 15-year-low of 4.40 per cent and was also the steepest cut since October 2004.
This will the second time that the governor will be addressing the media since the nationwide lockdown was imposed from March 25.
"Watchout for the RBI Governor @DasShaktikanta address live at 10.00 am today (April 17, 2020)," RBI said in a tweet.
The rupee fell 0.55 per cent to a new record low of 76.86 against the US dollar on Thursday, while the equity indices have been on a see-saw in the wake of thecoronavirusoutbreak losing over 30 per cent since January.
Good morning readers,Reserve Bank Governor Shaktikanta Das will address the media at 10 am on Friday amidst the steep fall in the rupee and the continuing volatility in other segments of the financial markets. Stay tuned for live updates.
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