Picture : Twitter / ANI
In what is widely seen as a fall-out of the COVID-19, the Reserve Bank of India Governor Shaktikanta Das while addressing the media announced the cut in reverse repo rate by 25 basis points to 3.75 percent against 4 percent earlier. The move according to Das will encourage banks to lend to the productive sectors of the economy. All key rate, including repo rates however remains unchanged.
He further said that the central bank will ensure adequate liquidity in the system to ease the financial stress caused by the Covid-19 pandemic.
He lauded banks and financial institutions and said that they have risen to the occasion to ensure normal functioning during the coronavirus outbreak.
He also said that the RBI is monitoring the situation that is developing due to the Covid-19 outbreak and will use all its tools to deal with the pandemic fallout.
Das says we need to do whatever it takes to flatten the COVID-19 curve. He said humanity faces its biggest trial. He expressed gratitude to all banking and financial institution personnel who are working to keep services operational.
He also thanked healthcare workers who were risking their lives to treat the patients. Invoking Mahatma Gandhi, Das said we must focus on light during our darkest moments.
Das also pointed out that It has been decided to provide special refinance facilities for an amount of Rs 50,000 crores to National Bank for Agriculture & Rural Development, Small Industries Development Bank of India, and National Housing Bank to enable them to meet sectoral credit needs.
