RBI Press Conference: Top 5 Major Announcements By Governor Shaktikanta Das

The Reserve Bank of India (RBI) governor Shaktikanta Das addressed the press today at 10 am and announced several measures to mitigate the economic loss caused due to the pandemic. Here are some key highlights of the conference.

Photo Credit: (PARANJPE / AFP)

New Delhi: The Reserve Bank of India (RBI) governor Shaktikanta Das addressed the press today and announced several measures and observations of the global and domestic markets which have been severely hit by the pandemic. Das said that the global macroeconomic indicators are austere due to the pandemic and lockdown. The GDPs of major economies around the world have contracted and low crude oil prices are also affecting budgetary revenues. The conditions are grim even for the domestic market and it is expected that India’s GDP growth in 2020-21 may remain in the negative as demand and production both take a hit due to the pandemic. Here are some key points from RBIs conference today

• The RBI announced that moratorium on loan repayments will be extended by three more months to ease financial stress.
• The Repo rate has been decreased by 40 bps to 4 percent and the reverse repo rate to 3.35 percent.
• Inflation outlook remains uncertain and there is an increase in the level of inflation in pulses. For this Das said that there will be a review of import duties
• Pandemic affected India’s export and imports which have contracted sharply. Certain measures are being taken to support the foreign trade sector. RBI increases the maximum permissible period of pre and post-shipment export credit from existing 1 year to 15 months for disbursements made up to July 31, 2020. For Exim bank the RBI has decided to extend a line of credit of Rs 15000 for a period of 90 days with a rollover of up to one year. The period for completion of outward remittances has also been extended for importers from 6 months to 12 months. This will be applicable for imports other than gold, diamonds, precious stones, and jewellery.
• The group exposure limit for lenders to corporates has been raised to 30 percent from 25 percent. Increased limits will be applicable till June 31, 2021.

The RBI has also  announced  o roll over Rs 15,000-cr refinance facility for SIDBI for 90 days