24 Key Highlights Of RBI Governor Press Conference dated 27.03.2020

24 Key Highlights Of RBI Governor Press Conference dated 27.03.2020 

1. Banking system in India safe; deposits safe in private bank; public should not resort to panic withdrawal, says RBI Governor​

2. Rs 3.74 lakh crore liquidity to be injected into system through measures announced today​, says RBI Governor

3. Moratorium on term loan, deferring of interest on working capital will not classify as default, not to impact credit history of borrower, says RBI Governor

4. RBI to undertake repo operation of up to Rs 1 lakh crore to infuse liquidity into the market​, says RBI Governor Shaktikanta Das​

5. Financial markets are under stress; require steps by the central bank for market stability and revival of economic growth, says RBI Governor

6. COVID-19 stocks the global economy and the outlook is highly uncertain and negative. Several nations are battling its exponential contagion. Countries are shutting down to prevent being sucked into a kind of black hole​, says RBI Governor

7. There is a rising probability that large parts of the world will slip into recession​, says RBI Governor

8. RBI will conduct auctions of long term repo operation (LTRO) of three-year tenure upto Rs1 lakh crore at floating rate linked to policy rate​, saysRBI Governor Shaktikanta Das​

9. Cash Reserve Ratio cut by 100 bps to 3%, says RBI Governor

10. Outlook is highly uncertain and negative​, says RBI Governor

11. Food prices may soften further on back of record foodgrain production, says RBI Governor 

12. Global slowdown can deepen with adverse implication for India; crude oil slump upside for India​, saysRBI Governor Shaktikanta Das​ 

13. MPC (Monetary Policy Committee) noted that global economic activity has come to a near stand-still as COVID19 related lockdowns and social distancing in affected countries. Expectations of a shallow recovery in 2020 from 2019’s decade low in global growth have been dashed​, saysRBI Governor Shaktikanta Das​ 

14. RBI is at work; calibrating action to meet any liquidity mode, says RBI Governor​ 

15. Living in an extraordinary situation; war effort needs to be mounted against coronavirus using conventional, unconventional tools, says RBI Governor​ 

16. India has locked down economic activity. Keeping finance flowing is the paramount objective of the RBI. India has locker down economic activity and financial activity is under severe stress, says RBI Governor​ 

17. MPC voted for a sizable reduction in Repo Rate and maintaining Accommodative Stance. There were some differences in quantum of reduction and MPC voted by 4:2 majority to reduce policy repo rate by 75 bps to 4.4%, says RBI Governor​ 

18. In view of COVID-19 pandemic, MPC advanced its meeting. MPC met on 24th, 26th and 27th March and took care of evaluation of macroeconomic and financial conditions, says RBI Governor​ 

19. Addressing you amid extraordinary circumstances. We have decided to address media virtually to ensure social distancing in these times, says RBI Governor​ 

20. The MPC decided to advance its meeting due on April 3 was decided for March 24, 25, 27 undertook the careful evaluation, says RBI Governor​ 

21. Monetary policy committee voted 4:2 majority to cut 75 basis points to 4.4 per cent, says RBI Governor 

22. RBI advances monetary policy committee meeting to Mar 25-27​, says Governor Shaktikanta Das​ 

23. Repo rate reduced by 75 basis points to 4.4%. Reverse repo-rate reduced by 90 basis points to 4%​

24. On Thursday, The Union Finance Minister Nirmala Sitharaman announced a Rs 1.7 lakh crore economic relief package for those hit hardest by the coronavirus outbreak in the country. The stimulus includes Rs 50 lakh per person insurance cover for doctors, paramedic, healthcare workers dealing with the deadly virus as well as 5 kg wheat or rice and 1 kg of preferred pulses for free every month for the next three months for 80 crore poor people.

DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.

THE AUTHOR – CS DEEPAK SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS LLP) AND CAN BE REACHED AT CONTACTHHPRO@GMAIL.COM OR 9910248911.