Reserve Bank Updates: In a bid to revive the Indian economy from the Corona virus crisis, the RBI has decided to cut the reverse repo rate by 25 basis points. It has now been decided to reduce the reverse repo rate from 4% to 3.75%. This will provide an opportunity for banks to lend at more affordable rates.
Apart from this, a decision has been taken by the central bank to give an amount of Rs 50,000 crore to NABARD, SIDBI and National Housing Bank. Under this, Rs 25,000 crore will be poured into NABARD. 15,000 crore will be given to SIDBI.
An amount of Rs 10,000 crore will be given to the National Housing Bank. They play an important role in strengthening the rural economy and promoting small scale industries.
Fear of a big recession, yet we are better: RBI Governor Shaktikanta Das said that due to the Corona virus crisis, there is a possibility of a big economic slowdown in the whole world.
Even after this, India’s position is better than other countries. He said that the global economy is expected to lose $ 9 trillion.
Efforts are on to minimize the financial loss in the country. The country’s financial condition has deteriorated more than before. Even after this, the situation in India is better than other countries.
Governor said, “the IMF has projected a growth of 7.4 per cent in 2021-22. This year, the growth is expected to be 1.9 percent. Crude oil prices are continuously falling.”
There will be a reduction of 30% in the world’s trade: due to Corona, medium and small scale industries have been affected more.
The RBI governor said that to increase the cash infusion of capital equal to 3.2 per cent of GDP. Worldwide trade is estimated to be down by 30 per cent. We are trying to improve the banking system in the country and 90% of the ATMs are operating at full capacity. India has a reserves of $ 476 billion.