RBI Governor's Press Conference / Repo rate reduced by 0.75%, 5.15% reduced to 4.4%, all types of loans will be cheaper
- · Repo rate is the rate at which RBI gives loans to banks
- · The RBI will try to ensure that the system does not have a cash crunch
Reserve Bank of India Governor Shaktikant Das held a press conference on Friday. He has announced a reduction in the repo rate by 0.75%. The repo rate has now been reduced from 5.15 percent to 4.4 percent. This will make all types of loans cheaper. 4 out of 6 members of the Monetary Policy Committee voted in favor of the rate cut. Covid-19 has affected economic activities in the world. The impact of Covid-19 will not be known right now. However, reducing the price of crude will provide some relief.
What said RBI governor
- · If you follow all the rules and advice of the government, you will be able to compete against Covid-19.
- · The government has taken several steps to protect the country's economy from the impact of the corona.
- · The RBI will try to ensure that the system does not cause cash shortages.
- · Banks and financial institutions should pay adequate attention to providing cash to the needy.
- · There is currently uncertainty about GDP and inflation rate outlook following Corona.
CRR also decreased, banks will increase cash
- · The cash reserve ratio (CRR) has been reduced from 1 percent to 3 percent. With CRR falling, banks will have more cash.
- · The steps taken by the RBI will increase the cash flow of Rs 3.74 lakh crore in the system.
- · All banks will have 3 months discount on EMI of term loan.
There is a 21-day lockdown going on in the country
The government on Thursday announced a relief package of Rs 1.70 lakh crore. It announced relief to the poor, peasants, laborers, women, the elderly, widows and the disabled. The lockdown has been going on for 21 days in the country due to coronavirus. It is affecting the economy and livelihoods.
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