RBI Governor Mr Shaktikanta Das has announced a series of steps to ease financial stress to Indian economy

Reserve Bank of India ( RBI) Governor Mr Shakthikanta Das has announced a series of steps to help Indian Economy which was caused due to Covid-19 Pandemic Situation. The Key points in his announcement includes Reverse Repo rate cutting by 25 Basis points and Rs 50,000 Crore Money pumping  for Financial Institutions such as NABARD ( Rs 25,000 Crore), NHB (Rs 10,000 Crore) and SIDBI ( Rs 15,000 Crore) allowing states to get more funds.

RBI Governor Shaktikanta Das

Reverse Repo rate was now 3.75 percent to earlier 4.00 percent. RBI said that this rate will benefit non banking and Micro financial companies/Institutions will launch long-term repo operations(TLTRO) Worth Rs 50,000 Crore.This number can be further increased based on the situation and needs. 

Reserve Bank of India has also increased WMA Limits by 60 percent. The Central bank has clarified that for all the accounts there is an asset classification where moratorium or deferment has been applied . Banks need to maintain an additional provisioning of 10% on standstill accounts. RBI has asked Banks not to pay any Dividend payments due to present financial crisis

The period of resolution of bank accounts will be increased by 90 days.  For large accounts an additional provisioning of 20 percent is required for not implementing resolution in 180 days.Scheduled Commercial Banks Liquidity Coverage Ratio (LCR) has been brought down from 100 percent to 80 percent by providing more Liquidity to banks.