Home » Business » RBI announced cut in benchmark interest rate, Repo Rate by 75 basis points to 4.4 per cent
rbi

RBI announced cut in benchmark interest rate, Repo Rate by 75 basis points to 4.4 per cent

Newdelhi:27/3/20:The Reserve Bank of India (RBI) Governor Shaktikanta Das today announced cut in benchmark interest rate, Repo Rate by 75 basis points to 4.4 per cent to deal with the hardship caused due to the outbreak of COVID-19.

The central bank also reduced the Cash Reserve Ratio (CRR) of all banks by 100 basis points to 3 per cent with effect from March 28 for 1 year providing total liquidity injection of Rs 3.74 lakh crore to the system in current scenario.

While announcing decisions of Monetary Policy Committee (MPC) in a live video conferencing, RBI Governor said that RBI will maintain accommodative stance. He informed that the Monetary Policy Committee voted for sizeable reduction in interest rate. The governor informed that the MPC has decided to advance its meeting due on 3 April to 24, 25, 27 March and undertook careful evaluation of economic situation in the country.

He said that the cut in Repo Rate has been made to encourage banks to give more to business rather than deposit it with RBI. The RBI has cut Liquidity Adjustment Facility by 90 bps to 4 percent. It also announced that the Reverse Repo Rate has been reduced by 90 basis points to 4% India has locked down economic activity.

The RBI chief noted that keeping finance flowing is the ‘paramount objective’ of the RBI, while India has locker down economic activity and financial activity is under severe stress.
Finance Minister Nirmala Sitharaman today appreciated RBI’s reassuring words on financial stability. She said the three month moratorium on payments of term loan installments (EMI) and interest on working capital, has given much desired relief. She said slashed interest rate needs quick transmission. Finance Minister said the macro-economic fundamentals of the Indian economy are sound adding that economy is stronger than what it was in the aftermath of the global financial crisis of 2008-09.

Information and Broadcasting Minister, Prakash Javadekar today welcomed the steps taken by the Reserve Bank of India. In a tweet today, he said, steps announced by RBI will reduce interest burden on businesses and industries and will boost economic activities. He said, three months moratorium on repayment of EMI will help all home buyers, vehicle buyers and other customers.

About Ashok Palit

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

x

Check Also

yourstory-indian-railway-train

East Coast Railway Terminates Trains To & From Puri

Bhubaneswar:30/5/20: Acting on the directives of Government of Odisha, East Coast Railway (ECoR) has short-terminated and short-originated two pairs of trains running between New Delhi and Puri. Purushottam Express starting on ...