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Here are all the measures announced by the RBI Governor today

Here are all the measures announced by the RBI Governor today

Here are all the measures announced by the RBI Governor today
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By Pranati Deva  May 22, 2020 12:23:59 PM IST (Updated)

Here are the key measures announced by the RBI Governor today:

The RBI Governor Shaktikanta Das announced a slew of measures on Friday aimed at further easing the liquidity conditions and providing relief to borrowers. This comes after the government gave details in five tranches of stimulus worth Rs 20 lakh crore announced by PM Narendra Modi earlier.

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RBI Governor came out for the third time with a set of measures to alleviate distress in the economy.
The measures included announcements on the repo rate front, an extension of moratorium, relief on debt servicing, and steps to ease financial constraints on state governments among others.
Let's take a look at the key measures announced by the RBI Governor today:
Liquidity support: The RBI Governor Shaktikanta Das announced a 40 basis points repo rate cut to 4 percent from 4.4 percent earlier. Consequently, the reverse repo rate now stands at 3.35 percent. The Monetary Policy Committee held an out-of-cycle review meeting from May 20-22 and the MPC voted in the ratio of 5:1 on the basis of rate reduction.
Moratorium extended: The RBI governor Shaktikanta Das further extended the loan repayment moratorium for another three months up to August 31. The move will ease the burden on individual as well as corporate borrowers from immediate liabilities arising out of loan repyments. He also announced that accumulated interest on the loan during the moratorium period can be converted to term loan which can be repaid by March 2021.
Foreign trade: The RBI has also extended a line of credit Rs 15,000 crore to EXIM bank to avail US dollar swap facility. This will have a rollover facility to up to one year.
SIDBI: The special refinancing facility of Rs 15,000 cr to SIDBI at repo rate for 90 days for lending and refinancing operations have been further rolled over for another 90 days. This will provide additional liquidity support to the MSME sector.
FPIs: The governor announced a voluntary retention route for FPIs. He added that an extension of 3 months will be given to meet 75 percent utilisation of investment limits.
Banks: Group exposure limit of banks increased to 30 percent from 25 percent. Lending institutions permitted to restore margins for Working Capital to the original level by March 31, 2021.
Imports: To manage importers' operative cycle, outward remittances against normal imports into India, is bought to 6 months from 12 months. RBI also increased pre and post shipment credit period to 12 months.
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