RBI HIGHLIGHTS

Highlights of RBI Monetary Policy Statement 2020-21* Policy rate unchanged at 4 per cent, reverse repo at 3.35 per cent* Loans against gold enhanced to 90 per cent of the value from current 75 per cent to mitigate COVID-19 impact on households* To continue with the accommodative stance to revive growth* Supporting economic recovery assumes primacy in the conduct of monetary policy in uncertain global environment * Sees upside risk to inflation, projects moderation in October-March* GDP growth to be negative in current fiscal * Stressed MSME borrowers eligible for loan restructuring if their accounts were classified standard* Allows lenders to provide window to restructure loans of corporate, individual borrowers to ease COVID-19 impact* A new resolution window for corporate and personal loans to be framed* To put in place safeguards for opening of current accounts and overdraft accounts for customers availing credit facilities from multiple banks* Priority Sector Lending (PSL) to include startups* Increased limits for renewable energy, including solar power, and small and marginal farmers and 'Weaker Sections' under PSL *To allow a pilot scheme for small value payments in offline mode while safeguarding interest of users, liability protection * Proposes Online Dispute Resolution (ODR) for digital payments* Rs 5,000 crore additional liquidity facility to be provided by the National Housing Bank (NHB) to boost liquidity in housing sector* Rs 5,000 crore liquidity support to NABARD to aid agri sector* Economic activity had started to recover, but surge in infection has forced imposition of lockdowns* Monetary Policy Committee conscious of primary mandate to achieve inflation target of 4 per cent within a band of +/- 2 per cent PTI JD ANUANU