Repo rate is the rate at which a country's central bank lends money to commercial banks, and the reverse repo rate is the rate at which it borrows from them.
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.
However, the Congress is trying very hard that the party's image during this crisis should not look negative among the people and the Congress model of relief through Congress-ruled states should also be shown to the public.
Liquidity support availed under the facility will be eligible to be classified as held to maturity even in excess of 25 per cent of total investment permitted to be included in the held to maturity portfolio. Exposures under this facility will not be reckoned under the large exposure framework.
PM Modi wrote 'Today’s announcements by RBI will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits'.
This has been done to minimise risks and to ensure that market participants maintain adequate checks and supervisory controls while optimising thin resources and ensuring the safety of personnel.
This comes after Reserve Bank (RBI)’s direction to all lending institutions including banks and housing finance companies, to allow 3-month moratorium to borrowers on term loans.
RBI Governor Shaktikanta Das today announced cut in benchmark interest rate, Repo Rate by 75 basis points to 4.4 per cent to deal with the hardship caused due to the outbreak of COVID-19.
Prime Minister Narendra Modi hailed RBI after rate cut. The RBI Governor’s address during which he announced a 75 basis...