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RBI's second relief package to help banks, NFCs and BFCs

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RBI's second relief package to help banks, NFCs and BFCs

Last updated: April 20 2020
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  • RBI's second relief package to help banks, NFCs and BFCs

    With the lockdown to control the spread of Coronavirus virus impacting the economic activity heavily, the Reserve Bank of India (RBI) yet again intervened with a set of announcements to help boost liquidity in the banking system and expand credit.

    As a immediate measure to do so, the Central bank has slashed the reverse repo rate by 25 basis points (bps) from 4% to 3.75%, and also plans to infuse Rs 50,000 crores into the system, to help banks, housing finance companies (HFCs), non-banking finance companies (NBFCs), etc., These will be under a new round of targeted long-term repo operations (TLTRO).

    The new set of measures are over and above the Rs 3.74-lakh crore liquidity infusion announced by the RBI on 27th March, 2020. The RBI reduced repo rate by a massive 75 basis points, to bring it down to a 15-year low of 4.4%, on the same day.

    RBI governor Shaktikanta Das addresses the media for the second time since the centre first imposed a lockdown starting 25th March. He informed that the banking regulator was open to mitigate the economic fallout of the virus, by using any instrument, conventional and unconventional.
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  • #2

    #2

    Re : RBI's second relief package to help banks, NFCs and BFCs

    The Coronavirus stimulus plan for Indian realty
    As per the plan, NBFCs will be allowed to grant relaxed NPA (non-performing asset) classification to their borrowers, a move that will help India’s liquidity-starved real estate developers, who primarily rely on non-banking financers for funding.
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