NEW DELHI: RBI governor Shaktikanta Das on Friday announced a series of steps to boost liquidity in a stimulus worth 3.2% of GDP to counter the economic impact of the coronavirus outbreak.
Here are key points from Das’s announcements:
*Deferment on loan and interest repayments will not be classified as defaults and will not impact credit history of borrowers.
* Policy repo rate has been reduced by 75 basis points from 5.15% to 4.4%.
* Reverse repo rate reduced by 90 basis points to 4%.
* Monetary Policy meet scheduled for March 31-April 3 was advanced to March 25-27.
* Monetary policy committee voted 4:2 majority to cut repo rate by 75 basis points.
* Reverse repo rate cut more so that banks are incentivised to lend, RBI governor said.
* RBI to inject liquidity worth Rs 3.74 lakh crore into the system.
* Banking system in India safe; deposits safe in private bank; public should not resort to panic withdrawal, Das said.