RBI Governor Press Conference Live | Inflation could decline further, settle below 4% by H2FY21, says Shaktikanta Das

Ghughuti Bulletin

https://www.moneycontrol.com/news/business/rbi-governor-press-conference-live-updates-shaktikanta-das-coronavirus-package-rate-cut-cheaper-loans-covid-19-stimulus-moratorium-5157831.html

Reserve Bank of India (RBI) Governor Shaktikanta Das addressed the media for a second time since the COVID-19 outbreak. Here’s a round-up of the key announcements.

The announcements covered four key points:

  1. Maintaining liquidity in the system
  2. Facilitating and incentivising bank credit flows
  3. Easing financial stress
  4. Enabling formal working of markets

– NPA classification will now not include the 90- day moratorium on loans.

– Another liquidity boost through TLTRO 2.0 worth Rs 50,000 crore to begin with for NBFCs, HFCs and MFIs

– Special refinance facilities of Rs 50,000 cr to NHB, SIDBI and NABARD

–  LCR requirement for SCB to be brought down from 100 percent to 80 percent with immediate effect

– Fixed reverse repo rate under LAF cut by 25 bps to 3.75 percent from 4 percent with immediate effect

– For all accounts where moratorium or deferment has been applied, there would be an asset classification standstill

– DCCO delayed for reasons beyond the control of promoters, can now be extended by one year without asset classification downgrade. This relief is now also allowed for NBFCs.

– For large accounts under default, additional provisioning of 20 percent is required for not implementing resolution in 180 days. This has now been relaxed.

– Banks shall not declare dividends until further notice

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