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| RBI announces Rs.50,000 crore booster package for small and medium-sized industries: Highlights with Details |
RBI announces Rs.50,000 crore booster package for small and medium-sized industries: Highlights with Details
Amidst the steep fall in the rupee and the continuing volatility in other segments of the financial market, Reserve Bank of India today announced several regulatory measures. While addressing media, Reserve Bank of India (RBI) Governor Shaktikanta Das announced to slash the reverse repo rate from 4 per cent to 3.75 per cent while keeping the repo rate unchanged. He also announced 50,000 crore rupees booster package for small and medium-sized industries to recover from the lockdown.
The RBI Governor Shaktikanta Das declared that the period of resolution plan for NPAs will be extended by 90 days and the loans given by NBFCs to real estate companies will get similar benefit as given by the scheduled commercial banks.
RBI Governor Shaktikanta Das said that these measures will help to maintain liquidity in the system, facilitate and incentivize bank credit flows, ease financial stress and enable formal working of markets.
Mr Shaktikanta Das also said that India's growth rate is expected to be highest among G20 nations, as per IMF estimates. The Governor mentioned that pre-monsoon kharif sowing has been aggressive and the IMD has forecasted a normal southwest monsoon.(input: newsOnair)
Highlights with Details of RBI Governor's announcement April 17, 2020
Refinance Facilities: Special Refinancing facilities of Rs. 50,000 crore for NABARD, SIDBI and NHB to address sectorial credit needs-
- Rs. 25,000 crore for NABARD for refinancing Regional Rural Bank (RRBs) cooperative bank and Micro Finance Institutions (MFIs)
- Rs. 15,000 crore to SIDBI for on-lending/refinancing
- Rs. 10,000 crore to NHB for supporting Housing Finance Companies (HFCs)
- Advances will be charged at prevailing RBI Repo rate
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