RBI wards against panic withdrawals amid spiraling stock markets; assures depositors

In what can be termed as a sense of relief for depositors, Reserve Bank of India cleared air about dropping share prices amid COVID-19 scare and reassured depositors that ir money would remain safe. dressing media via a video conference, RBI goverr Shaktikanta Das, on Thursday, said re was a pattern of panic withdrawal witnessed amongst customers in wake of falling share prices owing to pandemic. Urging public to trust financial institutions, Shaktikanta Das assured that funds would remain safe with banks and that re was necessity to worry about safety of ir funds invested. 

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'Depositors t at risk'

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Repo rate slashed

RBI anunced a 'sizeable reduction' in policy repo rate of country, slashing it by 75 base points to 4.4%, RBI goverr Shaktikanta Das anunced on Friday. RBI goverr revealed that Monetary Policy Committee (MPC), which preponed its meeting, voted in a majority of 4:2 to have a sizeable deduction in policy repo rate. reverse repo rate was slashed by 90 base points to 4%.  latest rate cut is by far biggest by central bank among a series of cuts that have been a highlight of Shaktikanta Das' tenure as Goverr. However, latest measure, which has come as an emergency measure and t within RBI's bi-monthly policy-review framework, is three times size of cut generally applied.

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This comes after minutes after influential Moody's Investors Service slashed India's 2020 GDP growth projection from its earlier forecast of 5.3% to 2.5% amid global Coronavirus pandemic. Indian government h earlier projected GDP growth at 5% in 2019-20 as compared to 6.1% in 2018-19. Q3 h witnessed a 4.7% growth. India has anunced a Rs 1.7 lakh crore Coronavirus relief pack, split between assuring food security and Direct Benefit Transfer cash-transfer as country observes a 21-day lockdown to combat COVID-19, of which over 700 infections have been confirmed thus far.

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Watch full briefing here: https://www.youtube.com/watch?v=99i3lVow5gQ