Tough times don’t last, tough institutions do: RBI Governor
New Delhi, Mar 27: Taking account of the gravity of the situation amidst the coronavirus outbreak, the RBI today made a host of announcements on the economic front.
RBI Governor, Shaktikanta Das said today, "tough times do not last. Only tough people and tough institutions do."
Das said that the RBI has permitted all commercial banks and NBFC allow a three month moratorium on payment of instalments of all term loans.
The moratorium will have no adverse impact on the credit history of beneficiaries RBI Governor, Shaktikanta Das said at a press conference here. Further it was also decided to reduce the cash reserve ration of all banks by 100 basis points to 3 per cent on net demand and test liabilities with effect from the fortnight beginning March 28 for a period of one year, Das also said.
Das also announced the reduction of repo rate cut considerably to help the country tide over the coronavirus disease pandemic.
The monetary policy voted to reduce repo rate by 75 basis points that is 4.4 per cent. The reverse repo rate was reduced by 90 basis points, he also said.
He further said that it would be unproductive for banks to park money with the RBI. They will have to give it to the people, he further added.
On Thursday Finance Minister Nirmala Sitharaman announced a 1.76 lakh crore package under a new scheme called the Pradhan Mantri Gareeb Yojana. The package was announced to address the immediate distress in the wake of the lockdown announced by the government to help prevent the spread of the coronavirus.
The government under this scheme aims at distributing 5 kilograms of rice or rice for each person free of cost. The government also said that it would distribute one kilogram of pulses to every low income family over the next three months. The finance minister also underlined plans for medical insurance of Rs 50 lakh for every front line health worker that would include doctors, nurses and paramedics.