Reserve Bank of India Governor Shaktikanta Das in his address to the media said that the RBI has decided to cut the repo rate by 75 basis points to 4.4%, while the reverse repo rate was reduced by 90 basis points. He said his speech came under “extraordinary circumstances”. He said the MPC had voted for a significant reduction in the repo rate to revive growth and mitigate the impact of covid-19. Shaktikanta Das’ address to the media was scheduled a day after Finance Minister Nirmala Sitharaman announced a series of measures to help the lower strata of society.
Check out all the latest updates on the RBI Governor’s live conference on the BusinessToday.In live blog
10:37 a.m.: The RBI allows credit institutions and banks to defer interest on working capital repayments for 3 months.
10:36 a.m.: RBI Governor says term loan moratorium, deferment of interest payment will not result in asset classification downgrade.
10:35 a.m.: The RBI Governor said banks could reassess the working capital cycle and they would not be treated as NPAs.
10:33 a.m.: Defer implementation of NSFR by banks for 6 months, says RBI
10:31 am: Monetary policy committee voted by 4:2 majority to cut repo rate by 75bps to 4.4pc: RBI governor
10.30am: Watch live coverage of the RBI Governor’s address to the media.
10:29 a.m.: The outlook now depends heavily on the intensity, spread and duration of the pandemic. There is a growing likelihood that large parts of the world will slide into recession: RBI Governor Shaktikanta Das
10:23 a.m.: MPC noted that global economic activity has almost come to a standstill due to COVID19-related lockdowns and social distancing in affected countries. Expectations of weak recovery in 2020 from decade of weak global growth in 2019 dashed: RBI Guvernor
10:22 am: CRR cut by central bank will release Rs 1.37 lakh crore in the market, says Shaktikanta Das
10:21 am: RBI cut cash reserve ratio by 100 basis points to 3%
10:20 am: Downside risks to growth stem from Covid-19, lockdowns: RBI Governor
10:18 am: Banks should keep credit circulating: RBI chief
10:15 am: MPC voted for a major cut in the repo rate to revive growth and mitigate the impact of covid-19: RBI chief
10:12 am: RBI Monetary Policy Committee met from March 24-27
10:11 am: This address comes in extraordinary circumstances: RBI Governor
10:00 am: Will there be a drop in the repo rate?
The RBI is expected to announce a major cut in the repo rate to give the banks a helping hand. At its bi-monthly meeting on February 6, the RBI’s Monetary Policy Committee maintained the status quo by keeping the repo rate unchanged at 5.15%. Consequently, the repo rate was also kept unchanged at 4.90%.
9:45 am: Modi government’s Rs 1.7 lakh crore package
The Modi government on Thursday announced free food transfers, cash for the vulnerable, cooking gas, concessions to ease the burden on low-income families as well as insurance coverage for frontline workers .
9:30 a.m.: Pradhan Mantri Gareeb Kalyan Yojana
Under the Pradhan Mantri Gareeb Kalyan Yojana (PMGKBY), the minister announced funds of Rs 1.7 lakh crore to help those without resources. Farmers, the elderly, women, construction workers, people below the poverty line, unionized and non-unionized workers would be the main beneficiaries of these measures. The Minister of Finance also announced 5 kg of rice or wheat for free to 80 million poor people in the country for the next three months. She also announced an insurance cover of Rs 50 lakh for every frontline worker including doctors, paramedics, nurses and sanitation workers.