RBI’s steps to keep the reality sector afloat amidst the lockdown
As a result, about 53% of the businesses in the country have been predicted to incur losses due to the unavailability of resources. The government has mandated the movement of essential goods along with some necessary measures to prevent an Indian economy slowdown.
RBI has proven to be a worthy accomplice to the government in this process by announcing several measures to save the reality sector from the lockdown effects. The following are some of the measures announced by RBI.
- Banks have been instructed to put a hold on EMI payments. This is applicable for all terms loans for 3 months. Additionally, interest rates have been decreased at a steep rate.
- The RBI has cut CRR for all banks by a staggering 100 points and in the process has successfully released 1.37-lakh crore rupees. Furthermore, the cash reserve ratio (CRR) maintained by the banks has also been decreased.
- There has been a significant decrease in BPS in the reverse repo rate leading it to the amount upto 3.75%.
RBI was quick to announce these measures, precisely one day after the Government of India announced a 1.7-lakh crore rupees fund to help combat the Coronavirus outbreak in the country. The measures have been instrumental in amassing 1.37 lakh crore rupees from the banking system of the country.
It is expected that the actions will help keep the economy and the real sectors of the country afloat. They would be instrumental in boosting the spirit of the Indian economy.
Niraj Singh
May 09-2020
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