RBI announces reverse repo rate cut, other measures: Who said what

RBI governor Shaktikanta Das, in his second televised address since the nationwide lockdown began from March 25, pledged to boost liquidity and expand bank credit.

The Reserve Bank of India (RBI) on Friday cut reverse repo rate by 25 basis points, eased bad-loan rules and froze dividend payment by lenders in its second set of measures to support the flagging economy amid a coronavirus lockdown.

A private money trader counts Indian Rupee currency notes at a shop in Mumbai. (REUTERS)

RBI governor Shaktikanta Das, in his second televised address since the nationwide lockdown began from March 25, pledged to boost liquidity and expand bank credit.

Here are reactions from a host of political leaders:

Prime Minister Narendra Modi

“Today’s announcements by @RBI will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits,” the PM said in a tweet.

Union home minister Amit Shah

“Modi government is leaving no stone unturned in this fight against COVID-19, ensuring minimum disruption in people’s lives while planning for a strong and stable India in days ahead. Steps taken by RBI today, to boost Indian economy, further reinforce PM @narendramodi’s vision (sic),” Amit Shah tweeted.

Watch | RBI cuts reverse repo rate by 25 bps, expects 7.4% GDP growth in 2021-22

“RBI’s decision to extend 25000cr credit facility to NABARD will greatly help our farmers, 15,000cr to SIDBI will provide much needed financial stability to MSMEs & startups, boost the Make in India program. 10,000cr to NHB and liquidity measures for Banks & NBFCs will help too,” he added.

Defence minister Rajnath Singh

“The measures announced by @RBI today will not only maintain adequate liquidity in the system but also boost the economic recovery in the country. PM Shri @narendramodi is leaving no stone unturned to stimulate the Indian economy in these difficult times & give relief to people,” Singh tweeted.

Railways minister Piyush Goyal

“Liquidity in the economy will be ensured as Banks are being encouraged to lend by reducing Reverse Repo Rate by 0.25% while Banks which are facing liquidity issues will benefit from reduction in Liquidity Coverage Ratio,” Goyal wrote on Twitter.

“Exclusion of moratorium period from 90 day NPA norm will help borrowers, while simultaneously the health of banks is being maintained through 10% higher provisioning and stopping dividends for the year,” he said.

Given the visionary steps taken under the leadership of PM @narendramodi ji to protect the lives of the people, today’s steps by RBI to support the economy will provide liquidity for growth & help India emerge as a world leader in a post COVID-19 world,” he added.

BJP president JP Nadda

“Initial ₹ 50,000 Cr to support small & mid NBFCs,refinance facilities of ₹25,000 Cr to NABARD to help farmers, ₹15,000 Cr to SIDBI to boost loans to start-ups & SMEs, ₹10,000 Cr to NHB to support housing for all, will prove to be significant steps (sic),” Nadda tweeted.

“Under the leadership of Honble PM @narendramodi ,the govt is taking all necessary steps to help the economy cope with this crisis during Covid-19. The RBI’s announcements today on providing liquidity & improving credit flow will help protect the livelihoods of the Indian people (sic),” he said.

Senior Congress leader Ajay Maken

“The announcements made by the RBI have no meaning. Congress and people are disappointed with the announcements. The government should take more measures to mitigate the problems of the poor and the vulnerable,” he said during a video press conference.