RBI Governor's media address Highlights- 50,000 Crores to NABARD & SIDBI, Indian GDP best among G20

Conducting his second press meeting in a month RBI Governor on Friday laid down the new announcements including financing to NABARD, SIDBI, NHB, cut in Reverse Repo Rate and new support to states and Banks. On Friday RBI Governor announced LTRO 2.0 for increase in financing to different sectors and also brought up the data of Indian Economy, Indian GDP forcast, Forex Reserves and predictions made by IMF on Indian economy for 2020-21 & 2021-22 amid Covid19 pandemic. RBI is monitoring the situation closely and to respond to emerging challenges said Shashikant Das Governor of RBi.

Liquidity measures to help the Indian economy. RBI Governor said. Surplus liquidity in banking system has increased substantially as result of central bank actions and Central Bank to announce new measures to maintain adequate liquidity in system, facilitate bank credit flow, ease financial stress, Das said. RBI to announce new measures to maintain adequate liquidity in system, facilitate bank credit flow, ease financial stress, Governor added.

RBI Governor Media Address Highlights

Central Bank Governor also said that Banks not to make any further dividend payout in view of financial difficulties arising from Covid-19. Saying on CPI inflation rate which declined in March; inflation is on a declining trajectory, RBI Governor Shaktikanta Das said. Whereas on IIP data Das said, no affect is fallen over IIP data of February due to Covid19. RBI Governor also said that as predicted by IMD Railnfal this year is also expected 100% which is a good sign for agriculture sector.

Beginning with service at humanitarian level amid Covid19 pandemic, RBI Governor quoted words of Mahatma Gandhi. Governor also extended gratitude to frontline health workers and all warriors working during pandemic.

Key Highlights of RBI Governer's Briefing-

• IMF projection of 1.9% GDP growth for India is highest in G20, says RBI Governor Shaktikanta Das
• World Economy will face loss of 9 trillion dollars
• India will pick pace of 1.9% growth Highest among all G20 countries
• World GDP will face 13-32% decline in 2020
• Crude oil prices are sharply declining
• Automobile production, sales declined sharply in March
• No downtime of internet or mobile banking during lockdown; banking operations normal
• Indian GDP is being predicted by IMF at 7.4% for 2021-22
• No shortage of foodgrains across Country
• India is expected to post sharp turnround in 2021-22, says RBI Governor quoting IMF projection
• electricity demand has fallen sharply amid lockdown
• Systematic liquidity is in surplus to 4.3 %
• 91% of ATMs are working currently in Country
• TNTRO 2.0 to invest beyond 50,000 crores
• 25,000 Crores given to NABARD, 25,000 crores to SIDBI and 10,000 Crores to NHB for housing financing
• RBI cuts reverse repo rate from 4% to 3.75%.
• Repo rate remains unchanged, says RBI Governor Shaktikanta Das
• LCR requirement of banks brought down to 80% from 100%; to be restored in phases by April next year

In his second press briefing since outbreak of Covid19 in India RBI Governor also said that Loans given by NBFCs to real estate companies to get similar benefit as given by scheduled commercial banks. Central Bank will monitor evolving situation continuously, use all its tool to deal with pandemic fallout said Governor.

Read Full- RBI Governor's Media Briefing Test with detailed Announcements

Should Read-Lockdown 2.0 New Guidelines

In his previous briefing RBI Governor announced to cut rate by 75 basic points and three months moratorium on term loans whose installments are due between March 1 and May 31. Ahead of the RBI Governor's briefing Sensex opened with more than 1000 point.