InvestorQ : What are the key highlights of the monetary announcements made by the RBI governor, Shaktikanta Das, on 22 May?
Lavanya Subramanian made post

What are the key highlights of the monetary announcements made by the RBI governor, Shaktikanta Das, on 22 May?

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ishika Banerjee answered.
9 months ago
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Here are the key announcements made by the RBI governor on May 22.

· Repo rate has been cut by 40 bps to 4%. This is in addition to the 75 bps rate that the RBI had implemented in its previous policy in late March.

· The loan moratorium has now been extended till August 31 for a total period of 6 months. This was earlier for 3 months up to May 31.

· RBI governor has projected even after the lockdown is lifted, economic activity may be subdued in Q2 with some signs of pick up only in Q3.

· To ease the loan pressure, RBI has enhanced group exposure limit for lenders to corporates from 25% to 30%. Export credit period extended from 12 to 15 months.

· Like on the pervious occasion, the MPC met out of normal cycle and retained its accommodative stance, which is positive.

· Reverse repo rate stands reduced to 3.35%, making it unattractive for banks to park funds with the central bank. RBI will extend Rs.15,000 crore line of credit to EXIM Bank.

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