Reserve Bank of India (RBI) Governor Shaktikanta Das is addressing the media on Friday. This development comes a day after PM Modi met Union Finance Minister Nirmala Sitharaman on Thursday during which the impact of Coronavirus pandemic on the economy was reviewed.
In his address, the RBI governor thanked the people involved in essential services. Quoting IMF, RBI governor said that 1.9% GDP growth for India is highest in G20 countries. He added that India is expected to post sharp turnround in 2021-22. He announced that RBI has cut reverse repo rate under liquidity adjustment facility (LAF) from 4% to 3.75% and has provided Rs 50,000 cr special finance facility to financial institutions such as Nabard, Sidbi, NHB.
This will encourage banks to lend to the productive sectors of the economy. With regard to other measures, Das said RBI will begin with giving an additional Rs 50,000 crore through targeted long-term repo operation (TLTRO) to be undertaken in tranches. He further said surplus liquidity in the banking system has increased substantially as result of central bank's actions.
Stating that the RBI is monitoring situation developing out of Covid-19 outbreak, he noted that the contraction in exports in March at 34.6 per cent much more severe than global financial crisis of 2008-09.
Watch out for the RBI Governor @DasShaktikanta address live at 10:00 am today (April 17, 2020) #rbitoday #rbigovernor— ReserveBankOfIndia (@RBI) April 17, 2020
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