Living in extraordinary situation; war effort needs to be mounted against coronavirus using conventional, unconventional tools. The RBI is at work; calibrating action to meet any liquidity mode. The global slowdown can deepen with adverse implication for India; crude oil slump upside for India. Food prices may soften further on back of record food-grain production. Outlook highly uncertain and negative in view of outbreak of Covid-19" says Das


• The monetary policy committee voted 4:2 majority to cut repo rate by 75 basis points to 4.4 per cent
• Reverse repo reduced by 90 basis points to 4%
• RBI to undertake repo operation of up to Rs 1 lakh crore to infuse liquidity into market
• Cash reserve ratio of all banks reduced by 100 bps to 3 per cent with effect from March 28 for 1 year; to release Rs 1.37 lakh crore liquidity
• Rs 3.74 lakh crore liquidity to be injected into system through measures announced today
• RBI permits all lending institutions to allow 3-month moratorium on payment of installments on term loans
• Moratorium on term loan, deferring of interest on working capital will not classify as default, not to impact credit history of borrower
• Interest on working capital facilities to be deferred by three months; such deferment not to be considered for NPA
• All measures not to effect credit history