Coronavirus: RBI's announcements will help farmers, MSMEs, poor, says PM Modi

Coronavirus: RBI's announcements will help farmers, MSMEs, poor, says PM Modi

Coronavirus update: PM Modi welcomed the RBI's announcements and said that the apex bank's measures will help states by increasing WMA limits

Coronavirus news: Modi welcomes RBI's announcements Coronavirus news: Modi welcomes RBI's announcements

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.

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.

Also read: Coronavirus Live Updates: Over 1,000 COVID-19 cases in India in 24 hours; country's total count past 13,000-mark

"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.

Also read: RBI Governor Shaktikanta Das announces fresh stimulus: Key highlights

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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.