RBI announcement will enhance liquidity and improve credit supply: PM Modi

New Delhi: In the midst of lockdown, the Reserve Bank of India has made big announcements to save the developing country due to the Corona crisis. The RBI reduced the interest on bank deposits by reducing the reverse repo rate.

Prime Minister Narendra Modi thanked the relief given by the RBI. He said that this would benefit small businesses, MSMEs, farmers and the poor. PM Modi tweeted that this relief will be helpful for banks.

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https://twitter.com/narendramodi/status/1251054144284065794?s=20

PM Modi tweeted, 'Today’s announcements by @RBI will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits."

https://twitter.com/nsitharamanoffc/status/1251083451073040386?s=20

Finance Minister Nirmala Sithatraman also tweeted after the announcement of RBI. She wrote, 'The RBI has issued the circular for the targeted long-term repo operation (TLTRO) that will be aimed at mid and small NBFCs and MFIs. The funds thus availed are to be deployed in investment grade bonds, commercial paper and non-convertible debentures of NBFCs.'

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0.25% reduction in reverse repo rate: Shaktikanta Das

RBI Governor Shaktikanta Das on Friday announced a 0.25% reduction in reverse repo rate to revive the economy that is suffering from Corona virus catastrophe, along with an additional arrangement of Rs 50,000 crore for the cash crisis in the market.

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