Here are some key points from Das’s announcements:
- All lending institutions can allow a three-month moratorium on EMI payments.
- Deferment on loan and interest repayments will not be classified as defaults and will not impact the credit history of borrowers.
- The policy repo rate has been reduced by 75 basis points from 5.15 per cent to 4.4 per cent.
- Reverse repo rate reduced by 90 basis points to 4 per cent.
- Monetary Policy meet scheduled for March 31-April 3 was advanced to March 25-27.
- Monetary policy committee voted 4:2 majority to cut repo rate by 75 basis points.
- Reverse repo rate cut more so that banks are incentivised to lend, RBI governor said.
- Cash Reserve Ratio (CRR) of all banks have been reduced by 100 basis points to 3 per cent of net demand and time liabilities with effect from the fortnight beginning March 28 for a period of 1 year.
- RBI to inject liquidity worth Rs 3.74 lakh crore into the system
- The banking system in India safe; deposits safe in a private bank; the public should not resort to panic withdrawal, Das said.
- Monetary policy committee refrained from giving outgrowth inflation outlook for coming fiscal on uncertain outlook.
- India has locked down economic activity and financial market are under severe stress.
- The global slowdown can deepen with adverse implications for the country, Das said.
- Slump in crude oil prices upside for India; foodgrain prices may soften further on the back of record production, RBI governor said.
COVID-19 related volatility in the stock market has impacted share prices of banks as well resulting in some panic withdrawal of deposits from a few private sector banks.
- It would be fallacious to link share prices to the safety of deposits. Depositors of commercial banks including private sector banks need not worry on the of their funds, the RBI governor said.
- RBI governor said all instruments conventional and unconventional are on the table to support financial stability and revive growth.