"The measures announced by RBI today will not only maintain adequate liquidity in the system but also boost the economic recovery in the country. Prime Minister Narendra Modi is leaving no stone unturned to stimulate the Indian economy in these difficult times and give relief to people," tweeted Singh.
The RBI today announced a reduction in the reverse repo rate by 25 basis points from 4 per cent to 3.75 per cent to facilitate bank credit flows amid the coronavirus crisis and subsequent countrywide lockdown, which has brought the economic activity to a halt. The central bank has, however, kept the repo rate unchanged.
"The mission is to minimise the epidemiological damage in the country due to the coronavirus. I want to convey the RBI's resolve and the way forward," said RBI Governor Shaktikanta Das.
He also announced conducting targeted long-term repo operation (TLTRO) with Rs 50,000 crore to maintain liquidity in the system, incentivise bank credit flows and enable normal functioning of the market.
The banks will be required to invest 50 per cent of the funds under TLTRO 2.0 to small and mid-sized non-banking finance compes (NBFCs).
Das also announced a Rs 50,000 crore special refinance package -- National Bank for Agriculture and Rural Development (NABARD) Rs 25,000 crore, Small industrial Development Bank of India (SIDBI) Rs 15,000 crore, and the National Housing Bank (NHB) Rs 10,000 crore.
( With inputs from ANI )