On Friday, Reserve Bank Of India has announced several steps to help in reducing the financial stress and maintain liquidity in the system, which has been made considering a definite
The RBI has reduced the cost of reverse repo rate. Reverse repo rate refers to the total amount at which the banks park their funds with the central bank. As per new guidelines by RBI, the repo rate has been reduced by 25 basis points to 3.75 percent.
RBI will also start off by giving Rs 50,000 crore with the help of long term operation. RBI will also be coming up with a separate section of Rs 50,000 crore for various institute of finance such as Nabard, National Housing Bank and Sidbi.
Das further add on to his statement that currently RBI is keeping a track of the situation which is arising because of the COVID-19.
The plans RBI has come up with would act as encouragement the banks to organize these surplus funds in different types of investments and loans in productive sectors of the country. The baking regulator has also thought of coming up with the asset quality relief.
From January 2020, the retail inflation which is based on consumer price index has declined by 170 bps.
Das also said that the payment infrastructure is functioning smoothly and the operations at ATM stood at over 91 per cent of full capacity.