GDP growth in 2020-21 to be in negative territory: RBI Governor | Top Points

The address comes ahead of the meeting of RBI’s monetary policy committee between June 3-5 and RBI. The committee is likely to announce its second bi-monthly policy of 2020-21 on June 5.

Written by May 22, 2020 08:08

The Reserve Bank of India’s (RBI) governor, Shaktikanta Das addressed a press conference today.

Today, RBI reduced repo rate by 40 basis points to 4 per cent in an effort to further boost liquidity in the economy which has been reeling under the impact of COVID-19 induced countrywide lockdown.

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TOP POINTS

# It has been decided to relax rules governing withdrawal from Consolidated Sinking Fund (CSF) while at the same time, ensuring depletion of fund balance is done prudently. It will enable states to meet about 45% of redemption of their market borrowings which are due in 2020-21:RBI

# The Group Exposure Limit of banks is being increased from 25% to 30% of eligible capital base for enabling the corporates to meet their funding requirements from banks. The increased limit will be applicable up to 30th June, 2021: RBI Governor Shaktikanta Das

# The Group Exposure Limit of banks is being increased from 25% to 30% of eligible capital base for enabling the corporates to meet their funding requirements from banks. The increased limit will be applicable up to 30th June, 2021: RBI Governor Shaktikanta Das

# RBI to be vigilant in battle readiness to address dynamics of unknown future; will preserve financial stability: Governor Das

# Group exposure limit for lenders to corporates raised to 30% from 25%: RBI Governor

# RBI extends moratorium on loan repayments by three more months in view of COVID-19: RBI Governor

# Three-month moratorium we allowed on term loans&working capitals we allowed certain relaxations. In view of the extension of the lockdown&continuing disruption on account of  COVID-19 these measures are being further extended by another 3 months from June 1 to Aug 31: RBI Guv

# Measures announced today can be divided into 4 categories: to improve functioning of markets,to support exports&imports,to ease financial stress by giving relief on debt servicing&better access to working capital&to ease financial constraints faced by state govts: RBI

# The GDP growth in 2020-21 is expected to remain in the negative category with some pick up in second half: RBI Governor Shaktikanta Das

# RBI Governor says India seeing collapse of demand; dip in electricity, petroleum product consumption; fall in private consumption.

# RBI to roll over Rs 15,000-cr refinance facility for SIDBI for 90 days: Governor Das

# Monetary policy transmission has continued to improve: RBI Governor

# Combination of fiscal, monetary and administrative actions will create conditions for revival of economy in 2nd half of FY21: RBI Governor
# RBI Governor says India seeing collapse of demand; dip in electricity, petroleum product consumption; fall in private consumption

# India’s foreign exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15th May, foreign exchange reserves stand at 487 billion US dollars: Reserve Bank of India (RBI) Governor Shaktikanta Das

# Industrial production shrank by close to 17% in March with manufacturing activity down by 21%. Output of core industries contracted by 6.5%: Reserve Bank of India (RBI) Governor Shaktikanta Das

# The repo rate cut by 40 basis points from 4.4 % to 4%. Reverse repo rate stands reduced to 3.35%: Reserve Bank of India (RBI) Governor Shaktikanta Das

# Reserve Bank of India (RBI) Governor Shaktikanta Das holds a briefing.

The address comes ahead of the meeting of RBI’s monetary policy committee between June 3-5 and RBI. The committee is likely to announce its second bi-monthly policy of 2020-21 on June 5.