Thread by @Anurag_Office

“Amount equivalent to 3.2% of GDP was injected into the system by @RBI, during Feb 6 - Mar 27; since then surplus liquidity in banking system has considerably increased due to sustained government spending” @RBI

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“The foreign exchange reserve level continues to be robust, amounting to $ 476.5 billion, equivalent to 11.8 months of imports” @RBI

“Three auctions of Targeted Long Term Repo Operations have been conducted by @RBI, another TLTRO is being conducted today. This has eased financial conditions considerably” @RBI

“We have decided to undertake Targeted Long Term Repo Operations 2.0 with Rs. 50,000 crore to begin with; this may be stepped up as necessary. Emphasis is on ensuring adequate funds flow to NBFCs and MFIs. Notification to be issued today” @RBI

“Special refinancing facilities of Rs. 50,000 crore to be given to All India Financial Institutions such as NABARD, @sidbiofficial and National Housing Bank, to enable them to meet sectoral credit needs” @RBI

“Rs. 25,000 crore to NABARD
Rs. 15,000 crore to SIDBI
Rs. 10,000 crore to National Housing Bank

Amounts decided in consultation with these financial institutions, will be stepped up if found necessary” @RBI

“Reverse repo rate is being reduced from 4% to 3.75% with immediate effect, in order to encourage banks to deploy surplus funds in investments and loans in productive sectors of the economy.
Repo rate remains unchanged” @RBI

“Ways and Means Advances Limits of states has been increased by 60% over and above the limit as on March 31, 2020, to provide greater comfort to states to undertake #COVID19 efforts and to better plan market borrowing programme” @RBI

“For accounts for which lending institutions decide to grant moratorium or deferment and which were standard as on 1 Mar 2020, the 90-day NPA norm will exclude moratorium period; there will be an asset classification standstill for such accounts from Mar 1 - May 31” @RBI

“Recognizing challenges to resolution of stressed assets, period of resolution plan currently required to be completed by banks within 210 days from date of default shall be extended by 90 days” @RBI

“To conserve capital to retain banks' capacity to support the economy and absorb losses, scheduled commercial banks and cooperative banks shall not make any further dividend payouts from profits pertaining to FY 2019-20; decision to be reviewed at end of Q3” @RBI

“To ease liquidity position for individual institutions, Liquidity Coverage Ratio requirement for scheduled commercial banks being brought down from 100% to 80% with immediate effect. To be gradually restored in 2 phases - 90% by Oct 1, 2020 & 100% by Apr 1, 2021” @RBI

Provision for extension of Date for Commencement of Commercial Operations by 1 year, over and above 1 year permitted in normal course without restructuring,for loans to commercial real estate projects delayed for reasons beyond control of promoters, extended to NBFC loans: @RBI

“Early developments suggest that inflation is on a declining trajectory, having fallen by 170 basis points from Jan 2020 peak. In the period ahead, inflation could recede further. This would make policy space available, it needs to be used effectively and in time” @RBI