24 Key Highlights Of RBI Governor Press Conference dated 27.03.2020
1. Banking system in India safe; deposits safe in private bank; public should not resort to panic withdrawal, says RBI Governor
2. Rs 3.74 lakh crore liquidity to be injected into system through measures announced today, says RBI Governor
3. Moratorium on term loan, deferring of interest on working capital will not classify as default, not to impact credit history of borrower, says RBI Governor
4. RBI to undertake repo operation of up to Rs 1 lakh crore to infuse liquidity into the market, saysRBI Governor Shaktikanta Das
5. Financial markets are under stress; require steps by the central bank for market stability and revival of economic growth, says RBI Governor
6. COVID-19 stocks the global economy and the outlook is highly uncertain and negative. Several nations are battling its exponential contagion. Countries are shutting down to prevent being sucked into a kind of black hole, says RBI Governor
7. There is a rising probability that large parts of the world will slip into recession, says RBI Governor
8. RBI will conduct auctions of long term repo operation (LTRO) of three-year tenure upto Rs1 lakh crore at floating rate linked to policy rate, saysRBI Governor Shaktikanta Das
9. Cash Reserve Ratio cut by 100 bps to 3%, says RBI Governor
10. Outlook is highly uncertain and negative, says RBI Governor
11. Food prices may soften further on back of record foodgrain production, says RBI Governor
12. Global slowdown can deepen with adverse implication for India; crude oil slump upside for India, saysRBI Governor Shaktikanta Das
13. MPC (Monetary Policy Committee) noted that global economic activity has come to a near stand-still as COVID19 related lockdowns and social distancing in affected countries. Expectations of a shallow recovery in 2020 from 2019’s decade low in global growth have been dashed, saysRBI Governor Shaktikanta Das
14. RBI is at work; calibrating action to meet any liquidity mode, says RBI Governor
15. Living in an extraordinary situation; war effort needs to be mounted against coronavirus using conventional, unconventional tools, says RBI Governor
16. India has locked down economic activity. Keeping finance flowing is the paramount objective of the RBI. India has locker down economic activity and financial activity is under severe stress, says RBI Governor
17. MPC voted for a sizable reduction in Repo Rate and maintaining Accommodative Stance. There were some differences in quantum of reduction and MPC voted by 4:2 majority to reduce policy repo rate by 75 bps to 4.4%, says RBI Governor
18. In view of COVID-19 pandemic, MPC advanced its meeting. MPC met on 24th, 26th and 27th March and took care of evaluation of macroeconomic and financial conditions, says RBI Governor
19. Addressing you amid extraordinary circumstances. We have decided to address media virtually to ensure social distancing in these times, says RBI Governor
20. The MPC decided to advance its meeting due on April 3 was decided for March 24, 25, 27 undertook the careful evaluation, says RBI Governor
21. Monetary policy committee voted 4:2 majority to cut 75 basis points to 4.4 per cent, says RBI Governor
22. RBI advances monetary policy committee meeting to Mar 25-27, says GovernorShaktikanta Das
23. Repo rate reduced by 75 basis points to 4.4%. Reverse repo-rate reduced by 90 basis points to 4%
24. On Thursday, The Union Finance Minister Nirmala Sitharaman announced a Rs 1.7 lakh crore economic relief package for those hit hardest by the coronavirus outbreak in the country. The stimulus includes Rs 50 lakh per person insurance cover for doctors, paramedic, healthcare workers dealing with the deadly virus as well as 5 kg wheat or rice and 1 kg of preferred pulses for free every month for the next three months for 80 crore poor people.
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The author – cs deepak seth (associate partner helpinghands professionals llp) and can be reached at contacthhpro@gmail.com or 9910248911.
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