BJP Rajya Sabha MP Rajeev Chandrasekhar has lauded the steps taken by the RBI to ease financial stress amid lockdown due to coronavirus spread
Bengaluru: As the nation struggles to fight the coronavirus pandemic, the Reserve Bank of India has come up with a set of measures for the second time to extricate the country out of the economic mess.
One of the measures is to discourage the banks from parking their excess liquidity with the central bank and mandating the lenders to buy debt papers of small and medium sized non-banking financial companies (NBFC).
BJP Rajya Sabha MP Rajeev Chandrasekhar has lauded the steps taken by the central bank in improving the situation.
On this twitter account, he said, “The @rbi has stepped up again - with steady n sure steps. This is way to do it. No flash but solid n steady steps to get our Economy to SoftLand this year n roar again next year.”
The has stepped up again - with steady n sure steps . 👍🏻
This is way to do it. No flash but solid n steady steps to get our Economy to SoftLand this year n roar again next year https://t.co/rBTs1dxo4E
In another tweet, he said, "✅WMA limits increasd for states; ✅Liquidity to NBFCs (thru TLTROs n thru NABARD/SIDBI/HFC)
✅Standstill on NPAs for moratoriums."
These steps gives confidence n stability to markets n help Softland economy
steps are solid
✅WMA limits increasd for states; ✅Liquidity to NBFCs (thru TLTROs n thru NABARD/SIDBI/HFC)
✅Standstill on NPAs for moratoriums.
These steps gives confidence n stability to markets n help Softland economy
In his address, RBI Governor Shaktikanta Das said, “The RBI will monitor the evolving situation continuously and use all its instruments to address the daunting challenges posed by the pandemic. The overarching objective is to keep the financial system and financial markets sound, liquid and smoothly functioning so that finance keeps flowing to all stakeholders, especially those that are disadvantaged and vulnerable.”
The RBI has cut the reverse repo rate by 25 basis points to 3.75 per cent.
“RBI’s announcement to infuse liquidity into the system is extremely welcoming and a big relief to NBFC borrowers. The decision to cut the reverse repo rate by 25bps will encourage banks to look for lending opportunities. We would appreciate if banks reciprocate positively to NBFCs request on moratorium to manage cash flow smoothly," said Umesh Revankar, MD and CEO, Shriram Transport Finance, as reported by Business Standard.
The RBI will open a refinance window for National Housing Bank (NHB), National Bank for Agriculture Credit (NABARD) and Small Industries Development Board of India (SIDBI).
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