Reserve Bank of India (RBI) governor Shaktikanta Das is making key policy announcement on Thursday during the bi-monthly monetary policy address.
Here are the highlights:
– Priority sector lending status extended to start-ups
– Loans against gold enhanced to 90% of the value from current 75% to mitigate Covid-19 impact on households
-With Covid-19 continuing to affect economy, stressed MSME borrowers to be eligible for restructuring of debt if their accounts were classified standard
– RBI allows lenders to provide window to restructure loans of corporate, individual borrowers to ease Covid-19 impact, says Governor Das
– Rs 10,000 cr additional liquidity facility to be provided by NHB, NABARD
– In India, economic activity had started to recover, but surges of fresh infections have forced fresh lockdowns, hence several high-frequency indicators have levelled off
– Real GDP growth to remain in negative zone in 1st half and in full fiscal
– India’s economic growth to contract in first half of fiscal beginning April 2020
– Supply chain disruptions persist; inflation pressures evident across segments
– Headline inflation likely to remain elevated in Q2 but likely to ease in second half: RBI governor
– Economic activity had started to recover, but surge in infection has forced imposition of lockdowns,
– Global economic activity has remained fragile; surge in Covid-19 cases has subdued early signs of revival, says RBI Governor
– RBI to maintain accommodative stance
– Reserve Bank of India keeps interest rates unchanged at bimonthly monetary policy review
– Reverse repo rate also remains unchanged at 3.3%: RBI Governor Shaktikanta Das
– RBI keeps repo rate unchanged at 4%
