Measures taken by Reserve Bank of India on support of revival of economy after COVID-19

Measures taken by Reserve Bank of India

•Reduction of Cash Reserve Ratio (CRR) has resulted in liquidity enhancement of ₹1,37,000 crores

•Targeted Long Term Repo Operations (TLTROs) of ₹1,00,050 crore for fresh deployment  in investment grade corporate bonds, commercial paper, and non-convertible debentures.

•TLTRO of Rs.50,000 crore for investing them in investment grade bonds, commercial paper, and non-convertible debentures of NBFCs, and MFIs.

•Increased the banks’ limit for borrowing overnight under the marginal standing facility (MSF), allowing the banking system to avail an additional ₹1,37,000 crore of liquidity at the reduced MSF rate.

•Announced special refinance facilities to NABARD, SIDBI and the NHBfor a total amount of ₹50,000 crore at the policy repo rate 

•Announced the opening of a special liquidity facility (SLF) of ₹50,000 crore for mutual funds to alleviate intensified liquidity pressures.

•Moratorium of three months on payment of instalments and payment of Interest on Working Capital Facilities in respect of all Term Loans 

•Easing of Working Capital Financing by reducing margins

•For loans by NBFCs to commercial real estate sector, additional time of one year has been given for extension of the date for commencement for commercial operations (DCCO)