Highlights of RBI Governor Shaktikanta Das' comments at media address
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Informist, Wednesday, May 5, 2021
MUMBAI - Following are the highlights of comments by Reserve Bank of India Governor Shaktikanta Das at a press conference today:
* The COVID-19 situation has altered drastically since March
* In the last few weeks, India has been fighting sharp rise in COVID cases
* Will continue to monitor situation, deploy tools at command
* Will use tools to support businesses impacted by COVID
* To unveil first part of comprehensive measures to help economy
* 250 RBI personnel quarantined for continuity of operations
* Speed of virus must be matched with well-timed policy steps
* Global outlook highly uncertain, clouded with downside risk
* Global economy showing incipient signs of recovery
* CPI inflation benign for many developed countries
* Supply conditions underpinned by farm sector's resilience
* To unveil first part of comprehensive measures to help economy
* Forecast of normal monsoon likely to sustain rural demand
* Forecast of normal monsoon to have soothing impact on CPI
* Record foodgrain output, buffer stocks support other sectors
* Businesses learning to survive with restrictions
* Reports suggest mfg disruption minimal so far
* Dent to aggregate demand may be moderate vs year ago
* To monitor all data to assess impact of second COVID wave
* High frequency growth indicators giving mixed signals
* To monitor all data to assess impact of second COVID wave
* Data shows persistence of input price pressures
* Price of petrol, diesel showed some moderation in April
* Don't expect broad deviation in CPI inflation from forecasts
* Build-up in input price pressure remains a concern
* Don't expect broad deviation in CPI inflation from forecasts
* FX reserves at $588 bln as on Apr 30
* FX reserves give confidence to deal with global spillovers
* G-SAP has generated softening bias in gilt yields
* To buy gilts worth 350 bln rupees on May 20 under G-SAP
* Small businesses bearing highest burden of 2nd wave of COVID
* 3-year, 500-bln-rupee term liquidity facility opened till Mar
* 3-year loan facility to get priority sector tag for banks
* Banks to lend to healthcare sector cos via liquidity facility
* Expect banks to create COVID loan book
* Banks to create COVID loan book under 3-yr loan facility
* To conduct special long-term repo ops for small fin banks
* To hold special TLTRO for 100 bln rupees for small fin banks
* Additional liquidity benefit for banks giving COVID loan
* To conduct special long-term repo ops for small fin banks
* 40-bps reverse repo incentive for banks' COVID loans
* Small fin bank loans to small microfinance cos can be priority sector
* To announce COVID-related resolution framework 2.0
* Small borrowers, MSMEs, individuals most vulnerable
* To allow recast for small loans tagged standard on Mar 31
* Banks can recast standard loans with up to 250-mln-rupee dues
* Only some small borrowers eligible in resolution framework 2.0
* Extending moratorium for loans recast in 2020 COVID plan
* Use of video KYC extended to more cases
* Banks can use all floating provisions as on Dec 31 for NPAs
* No punitive actions for gaps in KYC updation till Dec 2021
* Relaxes norms for use of overdraft facility by states
* Immediate objective is to save lives, restore livelihoods
* State govts' overdraft tenure increased to 50 days
* Committed to use unconventional tools to tackle any COVID-related stress
* To work with govt to ease stress faced by citizens
* Will be proactive through the year
* Will take big, small steps to tackle stress through the year
By: via @AlliesFin Serve Stock Market
