RBI HIGHLIGHTS

Following are the highlights of the second stimulus announced by the Reserve Bank of India (RBI) to deal with the challenges posed by COVID-19 pandemic on the Indian economy* Reverse repo rate slashed by 25 bps to 3.75pc ; policy repo rate unchanged at 4.40 pc* Targeted long-term repo operations (TLTROs) worth Rs 50,000 crore opened for NBFCs and MFIs* Special refinance facilities of Rs 50,000 crore provided to NABARD, SIDBI and NHB* Ways and means advances (WMA) limit of states raised by 60 pc* Banks exempted to make dividend payout for 2019-20 in view of financial difficulties* Liquidity Coverage Ratio requirement of banks brought down to 80 pc from 100 pc* Extended timeline for resolution under IBC by another 90 days from existing 210 days* Relaxes 90-day NPA norm for moratorium period* Banks asked to maintain higher provision of 10 pc on all standstill accounts* Injected 3.2 pc of GDP into the economy to tackle liquidity situation* Supplied fresh currency of Rs 1.2 lakh cr from March 1 till April 14 to currency chests across the country* Inflation to recede even further; may even settle well below the target of 4 pc in 2nd half* Normal monsoon prediction bode well for rural demand* Growth expected to post a sharp turnaround and resume its pre-COVID trajectory by growing at 7.4 pc next fiscal as per IMF.