Reverse Repo Rate – As growing Covid-19 epidemic, for facilitation of economical slow down and to continue adequate liquidity in the Banking system or Functioning. The RBI takes important steps to maintain sustainability and functionality in Banking system.
RBI Governor Mr. Das ensure the country that “we have enough credit and liquidity to counter Economic Slow Down”. The RBI (Reserve Bank of India) Governor Mr. Shaktikanta Das on Friday gave the news of decreasing the Reverse Repo Rate from 4% to 3.75%.
The central bank will ensure adequate liquidity in the system to ease the financial stress caused by the Covid-19 pandemic said by Mr. Das Governor of RBI.
RBI Governor’s address to the media https://t.co/uhsojdIeSF
— ReserveBankOfIndia (@RBI) April 17, 2020
What is Reverse Repo Rate
Reverse Repo Rate is the rate criteria at which the central banks of India borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control or monitoring the money supply in the country.
Special Financial Packages Announce by RBI – Reverse Repo Rate
Also Governer of RBI Mr. Das announced a package in which Reserve Bank of India (RBI) will begin with giving an additional fund of Rs 50,000 crore through (TLTRO) Targeted Long-Term Repo Operation to be undertaken in tranches.
There is also a announcement like for NABARD and SIDBI and other financial Institutions get re-financing help of Rs 50,000 crore. After the news of Cutting down Reverse Repo Rate, this will give a positive impact to economy and people too.
If we talk about what IMF said “the global locked down is cause worst recession and be ready to face the same. The locked down crises will cost to world around 9 trillion”.
IMF approves debt relief to 25 countries those who affected to Covid-19 and they doesn’t have enough financial or economical support to counter Covid-19.
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