Indian banking system safe and sound: RBI Governor Shaktikanta Das
RBI Shaktikanta Das said while addressing the media via live stream that RBI has infused Rs 2.7 lakh crore into the system since last February policy meet.Updated: Mar 27, 2020 12:43 IST
The Reserve Bank of India (RBI) governor Shaktikanta Das said on Friday Indian banks are safe and there is no need to resort to panic withdrawals as he announced several measures to counter economic fallout from a fast-spreading coronavirus in the country.
Das said while addressing the media via live stream that RBI has infused Rs 2.7 lakh crore into the system since last February policy meet.
“RBI will continue to be vigilant and take steps necessary to mitigate the impact of coronavirus,” RBI governor said.
Das also said the central bank was maintaining its “accommodative” stance and would continue its position “as long as necessary” to revive growth while ensuring inflation remained within the target.
The central bank’s six-member monetary policy committee (MPC) held an unscheduled meeting this week by video conference to arrive at its decision.
RBI also cut the repo rate by 75 basis points to 4.40% and reduced reverse repo rate by 90 basis points to 4%.
It also decided to reduce the cash reserve ratio (CRR) of all banks by 100 basis points to 3% from 4% of net demand and time liabilities with effect from the fortnight beginning March 28 for a period of one year.