RBI Infuses Liquidity into System

Special refinance facilities of Rs 50,000 cr to NHB, SIDBI and NABARD

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New Delhi: As India entered into the second phase of a nationwide lockdown to fight with  coronavirus, Reserve Bank of India (RBI) Governor Shaktikanta Das today announced new measures to boost liquidity, expand bank credit flow and ease financial stress.

Major Highlights are as follows:

NPA classification will now not include the 90- day moratorium on loans.

– Another liquidity boost through TLTRO 2.0 worth Rs 50,000 crore to begin with for NBFCs, HFCs and MFIs

– Special refinance facilities of Rs 50,000 cr to NHB, SIDBI and NABAR

– LCR requirement for SCB to be brought down from 100 percent to 80 percent with immediate effect

– Fixed reverse repo rate under LAF cut by 25 bps to 3.75 percent from 4 percent with immediate effect

– For all accounts where moratorium or deferment has been applied, there would be an asset classification standstill

– DCCO delayed for reasons beyond the control of promoters, can now be extended by one year without asset classification downgrade. This relief is now also allowed for NBFCs.

– For large accounts under default, additional provisioning of 20 percent is required for not implementing resolution in 180 days. This has now been relaxed.

– Banks shall not declare dividends until further notice

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