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Highlights of RBI Governor’s address
New Delhi, Apr 17: Reserve Bank of India (RBI), Governor, Shaktikanta Das addressed the media today amidst the ongoing coronavirus crisis.
Here are the highlights of the address:
- RBI has been very proactive and is monitoring the situation closely.
- India is expected to post a sharp turnaround in 2021-22
- The IMF projection of 1.9 per cent GDP growth for India is highest in G20
- The COVID-19 impact has not been captured in the index of industrial production data for February.
- Automobile production sales have declined sharply in March.
- Electricity demand has fallen sharply.
- Contraction in exports in March is at 34.6 per cent, which is much more than the global financial crisis of 2008-09.
- There has been no downtime of internet or mobile banking during the lockdown.
- Banking operations have been normal.
- Surplus liquidity in the banking system has increased substantially as a result of the RBI's actions.
- Frontline workers ie doctors, nurses, police etc have done great work.
- Under the liquidity adjustment facility, the reverse repo rate has been reduced by 25 basis points to 3.75 per cent.
- The repo rate is unchanged at 4.40 per cent as the decision is taken by the Monetary Policy Committee.
- Rs 25,000 crore for NABARD, Rs 15,000 crore and Rs 10,000 crore for SIDBI and NHB
- The 90 days non-performing asset norm will not apply to the moratorium offered on existing loans by banks.
- The liquidity coverage ratio requirement of banks has been brought down to 80 per cent from 100 per cent. This would be restored in two phases by April next year.
- Banks not to make any further dividend payout in view of the financial difficulties arising from COVID-19.