Excerpts from RBI Governor’s address to the Media :

• RBI has been very proactive, evolving situation is being monitored very closely.
• The mission is to do whatever it takes to prevent the epidemiological curve from steepening further,
• The macroeconomic and financial landscape has deteriorated precipitously in some areas, while light shines through bravely in some areas.
• As per @IMF, global economy is expected to plunge into its worst recession in 2020, estimating cumulative loss to global GDP as US $ 9 trillion. India is among the handful of countries expected to have a +ve growth rate of 1.9% – the highest among #G20 economies.

For accounts for which lending institutions decide to grant moratorium or deferment and which were standard as on 1 Mar 2020, the 90-day NPA norm will exclude moratorium period; there will be an asset classification standstill for such accounts from Mar 1 – May 31

• RBI is announcing additional measures:
  To maintain adequate liquidity in face of #COVID19
  To facilitate and incentivize bank credit flows
  To ease financial stress To enable normal functioning of markets
• Special refinancing facilities of Rs. 50,000 crore to be given to All India Financial Institutions such as NABARD, @sidbiofficial and National Housing Bank, to enable them to meet sectoral credit needs.
• Reverse repo rate is being reduced from 4% to 3.75% with immediate effect, in order to encourage banks to deploy surplus funds in investments and loans in productive sectors of the economy.

Source & Pic Credit : PIB