RBI: key point of Governor Addressing: 17th April

Compiled minutes of RBI Gov Address-17th April.

1. TLTRO 2.0- 50k cr to begin with in tranches for liquidity injection. Funds availed by banks -50% in NBFCs HTM bonds/NCds

2. 50k cr for refinance to All India Institutions NABARD/SIDBI/NHB. NHB gets 10k cr. Discussed with them and can be increased if needed. Policy repo rates applicable. 4.4%.

3. LAF- Reverse repo rate reduced to 3.75% from 4%. Should encourage banks to invest outside RBI.

4. WMA limits of states to increase by 60% from limit as on 1st April 2020. States expected to space requirement over the year. Available till September 30th.

5. Regulatory measures – consistent with Basil guidelines. Asset Classification – All accounts wherein morat given and were standard on 1st March. 0 period.

6. Large accounts under defaults – additional provision needed today within 210 days for stressed accounts. Period extended by 90 days.

7. No dividend from 31st March 2020 profits by banks. To be reviewed after 30th September.

8. LCR- requirements of SCBs from 100% to 80%. Restored to 90% till 1st oct and end of FY.

9. Loans to CF Projexts- 1 year further extension can be given without calling for restructuring.

10. RBI will continue to deal and make announcements to respond to emerging challenges.

11. Inflation could recede further making more space.

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