AMID LOCKDOWN, RBI PUT EMI'S ON HOLD, INTEREST RATE CUT WITH LOTS MORE: DETAILS LISTED! 

A day after Centre announced COVID-19 relief, Reserve Bank of India (RBI) Governor Shaktikanta Das addressed the media to cope with the financial difficulties amid 21-day lockdown due to the deadly coronavirus outbreak. The media address was broadcasted live on different social media like, Facebook and Twitter. 

During his address Shaktikanta Das said, "The economic outlook globally is uncertain and obviously negative... Financial stability is the topmost priority of the RBI in this crisis. Our priority is to undertake strong and purposeful action to protect the economy, and there is a need for all stakeholders to fight against the coronavirus pandemic," Das said.

"Indian banking system is safe and sound... In spite of the challenging environment, I remain optimistic," the RBI Governor added. Below are few important announcement from the address;  

- The RBI has allowed banks to provide a 3-month moratorium on loans and EMI repayments. It has also slashed key repo rate by 75 basis points to 4.4 percent in order to revive growth.

- The cut in repo rate: the key interest rate at which the RBI lends short-term funds to commercial banks has been the highest under Shaktikanta Das. Considering today's reduction, he has slashed the rates by a total of 210 basis points. 

- The RBI Governor also announced a cut of 100 basis points in the cash reserve ratio for a period of one year. Cash Reserve Ratio (CRR) is the amount of cash commercial banks have to mandatory park with (RBI).

- The central bank permitted all commercial banks and lending institutions to allow a three-month moratorium on all loans. 

- The RBI Governor-headed Monetary Policy Committee which was originally scheduled to meet early next month. "The RBI has already infused Rs 2.7 lakh crore into the country's financial system since the February policy meeting," the Governor said. 

- The central bank's overall liquidity injection stands at 3.2 per cent of GDP, he also stated. The central bank was maintaining its "accommodative" stance, and would keep its position "as long as necessary" amid lockdown in the country.

RBI Governor addressed the media a day after Finance Minister Nirmala Sitharaman announced a Rs 1.75 lakh-crore fiscal stimulus package after COVID-19 cases continue to rise across the nation. 

A tweet by central bank read as, "Watch out for RBI Governor @DasShaktikanta address to the media live at 10:00 am today (March 27, 2020) #rbitoday #rbigovernor YouTube: https://youtu.be/99i3lVow5gQ Twitter: @RBI @RBIsays https://facebook.com/RBISays."

Watch out for RBI Governor @DasShaktikanta address to the media live at 10:00 am today (March 27, 2020) #rbitoday #rbigovernor

YouTube: https://t.co/tUkqOXKusy

Twitter: @RBI

@RBIsayshttps://t.co/X2ON7F8SCw

— ReserveBankOfIndia (@RBI) March 27, 2020