Recent Development: RBI Bank Governor Shaktikanta Das announced a reduction in the repo rate by 75 basis points to 4.4 per cent due to coronavirus while reducing the reverse repo rate from 90 basis points to 4%. Coronavirus lockdown has greatly affected the country’s business and economy.
Highlights
- The repo rate has been reduced from 75 basis points from 5.15 per cent to 4.4 per cent and the reverse repo rate has been reduced by 90 basis points to 4 per cent. The reverse repo rate for lending to banks has been cut.
- It has been decided to reduce the Cash Reserve Ratio (CRR) of all banks on the basis of 100% points on all the basis of net demand and time liability starting from March 28 for a period of 1 year.
- The country’s global recession may be exacerbated by the adverse effects of the coronavirus.
- The cash reserve ratio (CRR) of all banks has been reduced from 100 basis points to 3 per cent of net demand and time liabilities.
- COVID-19 related volatility in the stock market has affected the stock prices of banks.
- Cash reserve ratio (CRR) cut from 4 per cent to 3 per cent for all banks for a period of one year.
Important Notes
- Governor of Reserve Bank of India – Shaktikanta Das
- RBI Headquarters – Mumbai
- Reserves – INR 3,612,641 Crores (US$510 billion) [March 2020]
- Established – 1 April 1935
