RBI Governor Shantikanta Das In Press Conference Today

RBI Governor
SOURCE: The financial express

Press release conducted by the RBI governor Shaktikant Das today has been done today in order to shoulder the declining financial stability of the nation due to the coronavirus pandemic in the world.

Governor said the Indian economy is marking a break of demand as suggested by electricity, petroleum products, and private consumption data. “Private consumption has taken the biggest blow due to the Covid-19 outbreak. Investment demand has halted,” he said.

There have been few announcements that might help the common man from the adversely affected economy like:

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The decrease in the Repo rate

The rate at which RBI gives loans to the commercial banks is called the repo rate which has been reduced to 4% from 4.04%. the new reverse repo rate is 3.35% from 3.75%, the rate at which RBI borrows money from commercial banks.

Repayment of loans date extended

Moratoriums extended by an additional three months from June 1 to August 31. He further added that deferment of working capital during 6 months will be converted into term loan which can be repaid by March 2021.

Foreign trade

Line of credit of Rs 15,000 crore for 90-days with a rollover of up to one year so as to enable it to avail US dollar swap facility.

The GDP growth rate is expected to stay negative

The Agriculture sector sees some positive hopes

The governor said that the group exposure limit for lenders to corporates has been raised to 30 percent from 25 percent

Meantime, the RBI announced rollover of Rs 15,000-crore refinances facility for SIDBI for 90 days. The export credit period has been increased to 15 months from 1 year.



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