Blog by Tickertape
In Current Events Trends

RBI’s second shot in the arm

1 Min Read
RBI

Last Updated on May 11, 2020 by Aradhana Gotur

While the RBI had announced a slew of financial measures to address the economic fallout due to coronavirus (COVID-19), the unabated impact of the deadly virus on the economy prompted the apex bank to roll out the 2nd set of measures on 17th Apr. Let us see what some of these are:

  • Even as the repo rate remained unchanged, the RBI slashed the reverse repo rate to 3.75% to encourage banks to lend more
  • Government-owned entities NHB, NABARD, and SIDBI will get special refinancing facilities worth Rs 50,000 crore
  • Along with banks, NBFCs, can also defer Date of Commercial Commencement of Operations (DCCO) of realty projects by a year if the delay was for genuine reasons
  • Banks are asked to maintain an additional provision of 10% to protect their health while they offer the 3-mth moratorium to borrowers
  • Scheduled commercial banks not to make dividend payout for the FY 2019-2020 until further notice
  • The LCR (Liquidity Coverage Ratio) required to be maintained by scheduled commercial banks will be slashed from 100% to 80% in a phased manner

Further, the RBI governor Shaktikanta Das also announced that India is expected to make a remarkable recovery in the aftermath of COVID-19, growing at 7% in FY2022.

Aradhana Gotur
Latest posts by Aradhana Gotur (see all)

Related Posts

Subscribe
Notify of
guest
1 Comment
Inline Feedbacks
View all comments
Tickertape users can easily identify red flags in their portfolio
Download App
Tickertape users can easily identify red flags in their portfolio
Download App

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.