Rajnath Singh lauds RBI's announcement; hails PM Modi for leaving 'no stone unturned'

Hailing the steps taken by the Reserve Bank of India (RBI), Defence Minister Rajnath Singh on Friday stated that the measures taken by RBI will boost the economic recovery in the country. He further lauded Prime Minister Narendra Modi for leaving no stone unturned in stimulating the Indian economy in these difficult times and give relief to people.

Prime Minister Narendra Modi on Friday also stated that it will enhance liquidity and improve credit supply. He added that the measures by the RBI will be a boost to the small businesses and MSMEs, farmers, as well as the poor. 

READ: RBI governor announces reverse repo rate cut from 4% to 3.75%; FULL address here

RBI cuts reverse repo rate 

The Reserve Bank of India on Friday cut the reverse repo rate and announced a slew of measures including a re-finance window of Rs 50,000 crore and targetted long term repo auction of a similar amount to deal with the impact of the COVID-19 pandemic. The central bank's Governor Shaktikanta Das assured that RBI will use all instruments at its disposal to deal with the challenges posed by the outbreak of the novel coronavirus, depending on evolving situations. This is not the last of the announcements. Based on evolving situations, the central bank will come up with responses in the future in the interest of the economy, he said.

READ: PM Modi hails RBI's announcements, says steps would help small businesses, MSMEs & farmers

RBI trims reverse repo rate

In a video message, Das said in order to encourage banks to deploy the surplus funds in investments and loans in productive sectors of the economy, it has been decided to reduce the fixed-rate reverse repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 4 percent to 3.75 percent with immediate effect. The reverse repo rate is the rate banks earn by parking deposits with the RBI. "The policy repo rate remains unchanged at 4.4 percent, and the marginal standing facility rate and the bank rate remain unchanged at 4.65 percent," he said.

READ: Coronavirus LIVE Updates: RBI cuts reverse repo rate by 25bps amid Covid lockdown

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