RBI Governor address live: Reverse Repo Rate reduced by 25 basis points from 4 percent to 3.75 percent
RBI Governor address live: India's growth this year of 1.9 percent is expected to be the highest among the G20 nations.
RBI Governor Shaktikant Das addressed the media live at 10 am on April 17, 2020. During the address, the RBI Governor reiterated that humanity faces trial of its time with COVID Pandemic. He said that in this environment, the RBI has been very proactive and has been coming out with announcements every second or third day.
The RBI Governor said that he felt it was necessary to address the nation to convey the resolve of the RBI at this time and the way forward.
RBI Governor address live: Key Highlights
• RBI is doing everything to fight the epidemiological challenge that the world is facing.
• The IMF global growth projections released on April 14 reveal that the global economy is expected to plunge into worst recession since 'The Great Depression'.
• The cumulative loss to the global GDP is expected to be around USD 9 trillion, which is greater than economies of Germany and Japan combined. The lockdown is being called as "The Great Lockdown".
• The economic situation has worsened since we last spoke. The macroeconomic and financial landscape has deteriorated precipitously in some areas since March 27. However, light still shines through bravely in some others.
• The IMF projections for 2020-21 reveal sizeable recoveries, close to 9 percentage points for the global GDP.
• India is expected to post a turnaround and resume after the COVID-19 pandemic by growing at 7.4 percent in 2020-21.
• India is among the handful of countries, which will report positive growth of 1.9 percent this year as per IMF. India's growth this year is expected to be the highest among the G20 nations.
• Fixed Reverse Repo Rate reduced by 25 basis points from 4 percent to 3.75 percent with immediate effect, Policy Repo rate unchanged. The RBI absorbed Rs 6.9 lakh crore on April 15 by means of reverse repo rate.
• The Way and Means Advances (WMA) limit of the States has been increased by 60 percent over and above the level as on March 31, 2020. The increased limit will be available till September 30, 2020.
• Non-banking finance companies can also avail relaxed non-performing assets (NPA) classification to their borrowers. The NPA classification will exclude moratorium period.
• The RBI to bring down the LCR requirement of scheduled commercial banks from 100 percent to 80 percent with immediate effect. This shall be restored to 90 percent by October 2020 and 100 percent by April 2021.
• RBI to provide 60% more funds to states.
• NBFCs to be allowed to extend real estate loans by 1 year, if projects get delayed.
• Banks, Co-operative Banks not required to pay any dividends.
This is the RBI Governor’s second media address after the COVID-19 outbreak. The RBI Governor had earlier on March 27, 2020 announced some relief measures for the finance sector to counter the impact of the first lockdown imposed to control the spread of novel coronavirus. The relief measures were approved by RBI's Monetary Policy Committee (MPC).