RBI measures to deal with COVID-19 fallout: Here is the chronology

By: |
Published: May 22, 2020 4:55:15 PM

Announces a special finance facility of Rs 50,000 crore for Nabard, Sidbi and National Housing Bank, targeted LTRO of Rs 50,000 crore and changes in NPA classification to exclude the 90-day moratorium period

Constitutes a crack team of 150 RBI officials to ensure smooth functioning of the financial systemConstitutes a crack team of 150 RBI officials to ensure smooth functioning of the financial system

From asking banks to put in place contingency measures to unscheduled policy review meetings to deep rate cuts, the Reserve Bank of India (RBI) has taken unprecedented measures to deal with the fallout of the coronavirus pandemic after the first case was reported in the country on January 30.

Following is a chronology of the central bank’s key comments and actions from February till now

Feb 6: Makes a passing reference to coronavirus outbreak in China; says softening of crude prices and bearish phase in equities due to coronavirus infections

March 3: Issues a statement on COVID-19 outbreak amid market volatility: says it is monitoring developments and ready to take appropriate actions

March 6: Governor Shaktikanta Das says India will be able to respond to the challenges emerging out of the coronavirus epidemic, RBI ready to intervene in whatever way required

March 16: Writes to banks to ensure operational and business continuity measures, right after the World Health Organization (WHO) declared COVID-19 as a global pandemic

Mid-March : Constitutes a crack team of 150 RBI officials to ensure smooth functioning of the financial system

March 27: Announces repo rate cut by 75 basis points, reduction in CRR by 100 basis points, Long Term Repo Operations (LTRO) to infuse Rs 1 lakh crore liquidity and other measures after first Monetary Policy Committee (MPC) meet following the pandemic. The meet was preponed by a week

Announces three-month moratorium on all loan repayments till May 31

April 3: Reduces daily money market trading time to four hours from 10 am to 2 pm

April 17: Cuts reverse repo rate by 25 basis points and other measures.

Announces a special finance facility of Rs 50,000 crore for Nabard, Sidbi and National Housing Bank, targeted LTRO of Rs 50,000 crore and changes in NPA classification to exclude the 90-day moratorium period

April 27: Announces a Rs 50,000 crore special liquidity facility for mutual funds

May 22: Announces repo rate cut by another 40 basis points after second MPC meet, which was also preponed. Extends the three-month moratorium on repayment of loans to banks by another three months till August 31.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Covid crisis: UP CM says no plans to impose fresh taxes
2Demand slump bites: Rupee fall doesn’t suffice to allay exporters’ woes
3Covid effect: Trai shelves plan to define tariff floors