RBI to use all instruments to deal with Covid-19 crisis, says Guv Das

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He also said that this is not the last of the announcements on financial support during the crisis, stating that the central bank will come up with responses in the future in the interest of the economy based on evolving situations.

Pointing out that the Reserve Bank of India (RBI) is monitoring all macro parameters on a continuous basis, he said, economic activity has come to standstill during lockdown.

The impact of Covid-19 is not captured in index of industrial production (IIP) data for February, he said, adding that contraction in exports in March at 34.6 per cent was much more severe than global financial crisis of 2008-09.

He said vehicle production and sales declined sharply in March and so did electricity consumption.

Appreciating the effort of banks and other institutions in keeping the financial market operational, Das said, there was no downtime of internet or mobile banking during lockdown and banking operations were normal.

Banks, financial institutions have risen to the occasion to ensure normal functioning during the outbreak of this pandemic, he said.

Announcing other measures, he said, liquidity coverage ratio (LCR) of banks have been brought down to 80 per cent from 100 per cent, and will be restored in phases by April next year.

Loans given by non-bank financial companies (NBFCs) to real estate companies will hold similar benefit as given by scheduled commercial banks, he said.

To improve liquidity for states, he said, ways and means limit has been raised to help them.

Quoting IMF an report, Das said India is expected to post a sharp turnround in 2021-22 itself.

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