What were the major announcements made by the RBI governor in his 10 am press conference on 17 April?

it is essential to understand the background in which the special package was announced by the RBI. Global losses are to the tune of $9 trillion. India is losing nearly Rs.35,000 crore daily due to the lockdown and there are no signs of growth reviving. Under these conditions, the focus was to ensure that credit flows continue, liquidity is abundant and growth is able to revive when the lockdown ends. Here are the highlights.

Launches TLTRO 2.0 worth Rs.50,000 crore to ensure that even the large and small NBFCs get funds to refinance their debt payments due in the next two months.

Additional Rs.50,000 crore refinance facility through the NABARD and NHB window to benefit NBFCs and also realty companies that borrow predominantly from NBFCs.

NPA classification for banks and for NBFCs to commence only after the EMI moratorium of 3 months for COVID-19 comes to an end. That should the classification worries for banks and NBFCs.

Reverse repo rate cut by 25 bps to 3.75% leaving banks with little incentive to park funds with the RBI and instead use the money to channelize credit

PSU banks and cooperative banks barred from payment of dividends till further notice with immediate effect. This will also help in conservation of cash flows.