The Reserve Bank of India Governor Announced the refinancing of Rs 50,000 crore for all Indian financial institutions such as Nabard, SIDBI, and NHB.
The Reserve Bank of India has turned its focus to fulfilling the borrowing needs of NBFCs, MFIs, and housing markets by offering special refinancing facilities of Rs 50,000 crore to All India Financial Institutions (AIFIs) such as NABARD and SIDBI. SIDBI, NABARD, NHB receive Rs 50,000 cr refinancing assistance from RBI
The reverse repo rate decreased by 40 bps to 3.35 per cent from 3.75 per cent of earlier GDP growth forecast to continue in the negative inflation group to stay stable in the first half of 2020 but to ease later.
RBI extended the three-month moratorium to EXIM banks from 1 June to 31 August.
Maximum allowable pre-and post-shipment of credits increased from 1 year to 15 months The bank liability cap will be expanded from 25 per cent to 30 per cent Voluntary Retention Route for FPIs Another 90-day extension for the 90-day period credit facilities available. This will provide additional liquidity support for the MSME sector
The statement arrives before the meeting of the RBI Monetary Policy Committee from 3-5 June and the RBI. The Committee is expected to release its second bi-monthly 2020-21 agenda on 5 June.
The coronavirus pandemic and lockout prompted RBI to accelerate its first bi-monthly policy statement by a week to March 27.