RBI is vigilant and ready to do whatever it takes to tackle the unknown future

– RBI governor

1. Maximum permissible period of pre and post shipment of credits increased from 1 year to 15 months

2. Rs 15,000 crore to EXIM banks

RBI allocates Rs 15,000 crore to EXIM banks to avail US dollar swap facility. This will have a rollover facility to up to one year.

3. RBI extends the three-month moratorium

  • The loan moratorium will be extended till August 31 2020.
  • This makes it a six month moratorium
  • Lending institutions are being permitted to restore the margins for working capital to the origin level by March 31, 2021

4. Policy announcements

  • Improve functioning of markets and market participants
  • Support exports and imports
  • Relief on debt servicing
  • Steps to ease the financial constraints of state governments

5. Monetary policy transmission has improved

An improvement in passing on a lower rate to borrowers has been noticed across various business segments.

Combination of fiscal, monetary, and administrative measures will help economy revive in the H2

– Shaktikanta Das

6. Merchandise exports slumped to the worst level in 30 years

7. Highly uncertain inflation outlook

Supply chock in April will persist for the next coming months

8. GDP growth is estimated to be in negative territory in FY 2020-2021

9. Headline inflation may remain firm in the first half, but will ease out in the second half.

10. Volume of world trade can shrink by 13-32% this year

– RBI governor Shaktikanta Das

11. The biggest blow came from private consumption slump with consumer durables production falling 33 percent in March 2020

12. Domestic economic activity hit

Domestic economic activity contracted severely in two months lockdown – Shaktikanta Das.

13. Agricultural sector has offered a ray of hope, Shaktikanta Das says

14. Covid blow

  • Top 6 states contributing to manufacturing in red
  • Power and fuel consumption has plunged
  • Double whammy- losses in production and crashing demand

15. RBI maintains accommodative stance

16. Policy repo rate cut by 40 basis points – from 4.4% to 4%

17. From his second presser

The RBI Governor announced refinancing support to the tune of Rs 50,000 crore through all India financial institutions such as Nabard, SIDBI and NHB.

18. Third presser by the RBI Governor in the last two months

The first one was held on March 27 and the second one was on April 17.

19. Will he, won’t he?

Governor Shaktikanta Das may advance the monetary policy review, which is due on June 6.

20. Assessing the damage

Earlier this month, Shaktikanta Das held a meeting with heads of both public and private sector banks to take stock of the economic situation and review the implementation of various measures announced by the central bank.

21. Standing Deposit Facility or SDF could be one of the measures that the RBI has been mulling over for a long time

22. Extra money

RBI has injected funds amounting to 3.2% of GDP into the economy since the February 2020 monetary policy meeting to tackle the liquidity situation

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April 2021