Hours after the Reserve Bank of India announced a slew of measures to mitigate the repercussions of the coronavirus pandemic on the economy, Prime Minister Narendra Modi welcomed the apex bank's decisions. He said that the RBI Governor's announcements that he made during the press conference would help the farmers, poor and MSMEs.
"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," said PM Modi on Twitter.
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.- Narendra Modi (@narendramodi) April 17, 2020
The RBI Governor on Friday announced TLTRO of Rs 50,000 crore for small and mid-sized corporates including non-banking financial companies (NBFCs) and micro finance institutions (MFIs) get enough liquidity. "The RBI will conduct targeted long-term repo operations (TLTRO 2.0) for an aggregate amount of Rs 50,000 crore, to begin with, in tranches of appropriate sizes," said Das.
The funds under TLTRO must be invested in investment grade bonds, commercial paper and non-convertible debentures, with at least 50 per cent going to small and mid-sized NBFCs and MFIs.
"The initial efforts to provide adequate system level liquidity are reflected in the sizeable net absorptions under reverse repo operations. With this achieved, the RBI has undertaken measures to target liquidity provision to sectors and entities which are experiencing liquidity constraints and, or hindrances to market access," Das said.
INDIA CORONAVIRUS TRACKER: BusinessToday.In brings you a daily tracker as coronavirus cases continue to spread. Here is the state-wise data on total cases, fatalities and recoveries in one comprehensive graphic.