Notably, this is the RBI Governor's second media briefing since the virus outbreak.
The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, on Friday addressed the media in New Delhi regarding some of the key financial decisions in the wake of the coronavirus disease (COVID-19) pandemic outbreak in India, which is now spreading like wildfire across the length and breadth of the country.
Notably, this is the RBI Governor's second media briefing since the virus outbreak. He acknowledged that the current health crisis is a 'trial' for 'humanity' and that the RBI has played a proactive role in monitoring the situation closely.
Here are the key points from his today's address:
- LCR requirement of banks brought down to 80% from 100%; to be restored in phases by April next year.
- Banks not to make any further dividend payout in view of financial difficulties arising from COVID-19.
- 90-day NPA norm not to apply on moratorium granted on existing loans by banks.
- Rs 50,000-crore special finance facility to be provided to financial institutions such as Nabard, Sidbi, NHB.
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RBI to announce new measures to maintain adequate liquidity in the system, facilitate bank credit flow, ease financial stress.
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Surplus liquidity in the banking system has increased substantially as a result of central bank actions.
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No downtime of the internet or mobile banking during lockdown; all banking operations are currently normal.
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The contraction in exports in March at 34.6% much more severe than the global financial crisis of 2008-09.
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Automobile production, sales declined sharply in March; electricity demand has fallen sharply.
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The impact of COVID-19 not captured in IIP data for February.
RBI Governor Shaktikanta Das assured it is expected that India's economy will make a sharp turnaround in 2021-22. For the current financial year 2020-21, Das said that the International Monetary Fund (IMF) has projected a sizable reshaped recovery, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround and resume its pre-COVID-19 state, pre-slowdown trajectory by growing at 7.4% in 2020-21.
Since March 27, the macroeconomic and financial landscape has deteriorated precipitously in some areas, but light still shines through bravely in some others, he said.
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 "RBI Governor Shaktikanta Das")
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