Reserve Bank of India (RBI) Governor Shaktikanta Das addressed media on Friday via video conference saying that a total of 150 RBI workers are in quarantine as the country goes through coronavirus outbreak. Speaking on the state of the economy amid coronavirus lockdown, Shaktikanta Das said that IMF projection of 1.9% GDP growth for India is highest in G20, though it is falling short of what was projected earlier before coronavirus gripped the world. However, he added that India is expected to post sharp a turnround in 2021-22, quoting IMF projection adding the impact of COVID-19 has not been not captured in IIP data for February.
Shaktikanta Das further said that the central bank will ensure adequate liquidity in the system to ease the financial stress caused by the COVID-19 pandemic. He also announced that the Central Bank has reduced the reverse repo rate - the rate at which banks park their fund with the central bank - by 25 basis points to 3.75 per cent. This will encourage banks to lend to the productive sectors of the economy.
With regard to other measures, Das said RBI will begin with giving an additional Rs 50,000 crore through targeted long-term repo operation (TLTRO) to be undertaken in tranches. Besides, he announced a re-financing window of Rs 50,000 crore for financial institutions like Nabard, National Housing Bank and Sidbi.
He further said surplus liquidity in the banking system has increased substantially as a result of the central bank's actions. Stating that the RBI is monitoring the situation developing out of COVID-19 outbreak, he noted that the contraction in exports in March at 34.6 per cent much more severe than global financial crisis of 2008-09.
(With inputs from PTI)
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