RBI Governor Shaktikanta Das announced ₹50,000 crore LTRO

As India entered into the second phase of a nationwide lockdown to contend the coronavirus, Reserve Bank of India Governor Mr Shaktikanta Das announced new measures to support liquidity, expand bank credit flow and ease financial stress.

The central is to conduct targetted long-term operations (TLTRO) 2.0 worth Rs. 50,000 crore to benefit the NBFCs and micro-financial institutions. After cutting the benchmark lending rate by 75 bps three weeks ago, the RBI today cut the reverse repo rate to 25 basis points to 3.75%. The RBI has also asked all banks to not make any dividend payments to shareholders keeping in mind the financial challenges during the COVID-19 pandemic.

Here are some key points that come from the press briefing 

  • Announced a second tranche of liquidity boost for the economy with a 25 basis point reverse repo cut taking it to 3.75 per cent from 4 per cent earlier so that the bank can lend more.
  • Additional Rs. 50,000 crore TLTRO (Targeted Longer-Term Refinancing Operations) 2.0 will infuse liquidity in the system
  • Money provided to NABARD, SIDBI & NHB will ensure that NBFCs/HFCs get funding
  • The smaller players will also get access to liquidity
  • Those accounts that have availed the moratorium facility, the period of the moratorium will be excluded from the 90-day NPA classification norms of the RBI.
  • Withhold the Bank’s decision regarding the Dividend payouts till further notice by RBI. Bar on dividend payout gives the banking system additional funds to improve credit flow to the economy
  • The press release of NSO on April 13 showed CPI declined by 70 basis point to 5.9 per cent for March.
  • Daily data on 22 essential items covered by the department of consumer affairs suggest that food prices have increased by 2.3 per cent in April till April 13. However, onion prices, LPG and kerosene prices have also declined in the first fortnight of April.
Recommended Read:

If you like this article, don’t forget to bless it with your tweet or share on your favourite social media.  Further, you might like to read Following Trading Journey:

An MBA Specialized in International Business Turned Full-Tim Trader cum Investor

Any questions hovering in your mind? Comment box is for you. Post your questions or suggestions there, we will reach to you sure.

No comments:

All Rights Reserved by Maine Bola Tha © 2023
Powered By Maine Bola Tha

Contact Form


Email *

Message *

Powered by Blogger.