RBI governor announced a massive 75 basis points cut in repo rates in an effort to counter the economic slowdown caused by the COVID-19 pandemic. RBI chief's presser comes a day after Finance Minister Nirmala Sitharaman announced a Rs 1.7 trillion package aimed at providing relief to the poor and marginalized sections of society.
The RBI's Monetary Policy Committee (MPC) was originally scheduled to meet in the first week of April. But with the disruption unleashed by the National lockdown, the central bank called for an emergency meeting.
WATCH RBI GOVERNOR'S PRESSER LIVE HERE
Here are the important updates from the presser:
10: 05 AM: RBI Governor addresses media via livestream
10:08 AM: "The MPC decided to advance the meeting in view of COVID-19 outbreak," says Das
10:10 AM: "The MPC has decided to cut the repo rate by 75 basis points to 4.4 per cent," says RBI Governor
10:13 AM: Das said reverse repo-rate has been reduced by 90 basis points to 4.4 per cent
10:15 AM: Liquidity adjustment facility cut by 90 basis points to 4 per cent, says RBI Governor
10:20 AM: India has locked down economic activity and financial activity is under severe stress. Keeping finance flowing is the paramount objective of the RBI: Das
10:25 AM: RBI has taken several measures to inject substantial liquidity. The priority is to undertake strong and purposeful action to protect domestic economy: RBI Governor
10:26 AM: Outlook is highly uncertain and negative: RBI Governor
10:26 AM: "We are going through an extraordinary situation right now; war effort needs to be mounted against coronavirus using conventional, unconventional tools," says Das
10:27 AM: Cash Reserve Ratio (CRR) for all banks cut by 100 basis points to 3 per cent
10:27 AM: Time has now come for the Reserve Bank of India to launch an array of arsenals to mitigate the impact of coronavirus: Das
10:28 AM: RBI permits all lending institutions to allow 3-month moratorium on payment of installments on term loans.
10:30 AM: Banking system in India safe; deposits safe in private bank; public should not resort to panic withdrawal: Das
10:31 AM: All the measures taken by the top bank will result in total liquidity injection of Rs 3.74 lakh crore to system: RBI Governor
10:32 AM: Lending companies, banks are allowed to defer interest on working capital repayments by three months. Banks may also reassess working capital cycle and will not be treated as non-performing assets: RBI Governor
10:35 AM: RBI Governor concludes presser saying, "stay clean, stay safe and go digital."