RBI Cuts Reverse Repo Rate By 25 Bps, Repo Rate Unchanged
To encourage banks to invest, reverse repo rate (RRR) has been reduced by 25 basis points to 3.75%. Ways and Means Advances (WMA) for States increased by 60% over and above the level as on March 30. India is among the handful of countries projected to register a positive growth rate amid the COVID-19 crisis. The country is expected to resume its pre-slowdown trajectory by growing at 7.4% in 2021-22. States such as West Bengal, Telangana, Odisha, Assam, Karnataka and Chhattisgarh are leading in sowing activities despite lockdown, said RBI Governor Shaktikanta Das. RBI will also take further measures to maintain adequate liquidity in the system, facilitate and incentivise bank credit flows, ease financial stress and enable formal functioning of markets.
It has been decided to reduce the fixed reverse repo rate under liquidity adjustment facility by 25 basis points from 4% to 3.75%, with immediate effect: RBI Governor Shaktikanta Das pic.twitter.com/LeJ0ym2P9n
— OTV (@otvnews) April 17, 2020