RBI RELAXATION DUE TO COVID19


RBI RELAXATION DUE TO COVID19

RBI governor vide Press Conference dated 27.03.2020 has discussed about various relaxation due to COVID-19.

1. Targeted Long Term Repos Operations (TLTROs):

Reserve Bank will conduct auctions of targeted term repos of up to three years tenor of appropriate sizes for a total amount of up to ₹ 1,00,000 crore at a floating rate linked to the policy repo rate.

RBI RELAXATION DUE TO COVID19
RBI RELAXATION DUE TO COVID19

1. Repo rate reduce – Repo rate cut by 75 bps to 4.4%

2. Reverse repo rate cut by 90 bps to 4%

3. CRR reduced by 100 basis points to 3%. ₹ 1.37 trillion of liquidity to be injected

4. Home loans – 3 months relaxation

5. Moratorium on Term Loans: The repayment schedule and all subsequent due dates, as also the tenor for such loans, may be shifted across the board by three months

6. OMOs are ongoing, LTROs are done. Regulatory moratoriums are done.

7. ₹ 1,00,000 crore 3 month bill auctions, first tranche of ₹25,000 crore auction starts today.

8. ₹3,74,000 lakh crore into the system.

9. Min daily CRR balance reduced from 90% – 80% till 30/06/2020

10. Total liquidity injection 3.4% of GDP

11. Deferment of Last Tranche of Capital Conservation Buffer: It has been decided to further defer the implementation of the last tranche of 0.625 per cent of the CCB from March 31, 2020 to September 30, 2020. Consequently, the pre-specified trigger for loss absorption through conversion/write-down of Additional Tier 1 instruments (PNCPS and PDI) shall remain at 5.5 per cent of risk-weighted assets (RWAs) and will rise to 6.125 per cent of RWAs on September 30, 2020.

Click here to read Full Detailed Press Release

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cslalitrajput

Lalit Rajput is a qualified Company Secretary and graduate with 5+ years’ experience in handling Secretarial and Compliance management. Working as Proprietor at Lalit Rajput &Associates, Company Secretaries and Compliance Head at EDUXGURU. Key areas include handling Compliances related to Secretarial, Start-ups, SEBI, FEMA, Labour Laws, GST, NCLT, IPR, MCA/ROC, RTA etc. He has started his career in Adventz Group with one of leading EPC Company, Kalindee Rail Nirman - A Div. Of Texmaco Rail & Engineering Limited (erstwhile known as Kalindee Rail Nirman (Engrs.) Ltd.) and after that worked with Outcome Solutions & Services LLP, a Risk Advisory firm and S. Srinivasan & Co.,Leading Company Secretaries firm in Mumbai and Chennai. He is also an active blogger/Author at many platform and has written various articles on: Taxguru, Compliance Calendar LLP, Studycafe, Caclubindia, Casansaar, theTaxTalk, Lawyer’s Connect, IPleaders, Governance Professionals, Lawyers club India, Dealout Professionals and many more. He has also blogger at ENLIGHTEN GOVERNANCE and contributed articles in ICSI E-Corporate Manager published by ICSI Ahmadabad Chapter.

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