RBI announces Rs.50,000 crore for MSMEs
Amidst the steep fall in the rupee and the continuing volatility in other segments of the financial market, Reserve Bank of India today announced several regulatory measures. While addressing media, RBI Governor Shaktikanta Das announced to slash the reverse repo rate from 4 per cent to 3.75 per cent while keeping the repo rate unchanged. He also announced 50,000 crore rupees booster package for small and medium-sized industries to recover from the lockdown.
The RBI Governor declared that the period of resolution plan for NPAs will be extended by 90 days and the loans given by NBFCs to real estate companies will get similar benefit as given by the scheduled commercial banks. He said that these measures will help to maintain liquidity in the system, facilitate and incentivize bank credit flows, ease financial stress and enable formal working of markets.