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Highlights of RBI's monetary statement

The highlights of the seventh bi-monthly monetary statement for 2019-20 by the RBI amid COVID-19 pandemic.

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Last Updated: Mar 27, 2020, 03.20 PM IST
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Following are the highlights of the seventh bi-monthly monetary statement for 2019-20 by the RBI amid COVID-19 pandemic:

* Monetary Policy Committee (MPC) advances meeting scheduled for Apr 1-3

* Repo rate slashed by 75 basis points to 4.4%

* Reverse repo rate cut sharply by 90 basis points to 4% making unattractive for banks to deposit funds

* MPC votes unanimously for a reduction in the policy repo rate

* MPC decides to continue with the accommodative stance as long as it is necessary

* Committee votes 4:2 in favour of rate cut; unanimous on change in stance

* 2 MPC members Chetan Ghate and Pami Dua voted for a 50 bps rate cut

* Several measures taken to infuse liquidity of about Rs 3.74 lakh crore into the financial system

* RBI to undertake repo operation to infuse Rs 1 lakh crore

* Cash Reserve Ratio (CRR) cut sharply by 100 bps to 3 per cent releasing Rs 1.37 lakh cr into the system

* RBI assures to work in mission mode, monitoring the evolving financial market and macroeconomic conditions

* MPC for the first time advances meeting date and refrains from giving next meeting date in the wake of evolving situation

* GDP growth rate of 5% for 2019-20 at risk from the impact of pandemic

* Global slowdown to deepen with adverse implication for India; crude oil slump upside for country

* Upside growth impulses to emanate from monetary, fiscal measures and the early containment of COVID-19

* Food prices to soften further on back of record foodgrain production

* MPC refrains from giving out growth, inflation outlook for coming fiscal on uncertain outlook

* RBI permits all lending institutions to allow 3-month moratorium on payment of installments on term loans

* Moratorium on term loan, deferring of interest on working capital will not classify as default

* RBI urges banks and other financial institutions to do all they can to keep credit flowing
(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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