RBI MPC highlights: Here is everything announced by Shaktikanta Das
In today's press conference, RBI governor Shaktikanta Das has made major announcement to boost borrowers in India, the Reserve Bank of India (RBI) in its Monetary Policy Meeting decided to cut down the Repo Rate by 40 bps to 4 per cent. The Central Bank of India reduced the Reverse Repo Rate to 3.35 per cent as well. This move is expected to give additional liquidity to the markets. Talking on the impact of coronvirus in the country and global market various announcements are been made.
Here are the top highlights of the RBI MPC meeting:
1. RBI cut policy repo rate by 40 basis points to 4 per cent and reduces Reverse Repo Rate to 3.35 per cent.
2. Consequently, the reverse repo rate was reduced to 3.35 per cent from 3.75 per cent. Das said the MPC had voted to maintain its accommodative stance, implying more rate cuts in the future if need arises.
3. RBI extends moratorium on loan repayments by three more months in view of COVID-19. This makes it a six month moratorium till 31 August.
4. The moratorium on interest on working capital was also extended by three months.
Also, interest accumulated for the six-month moratorium period can be converted into a term loan, Das said.
5. Further, bank exposure to corporates has been raised to 30 per cent of the group's networth from the current limit of 25 per cent, a move that will allow lenders to give larger loans to companies.
6. Maintaining financial stability is quite important, every possible step to deal with the current situation will be taken, Das said.