Home Minister Amit Shah praises RBI for fresh monetary stimulus to farm, MSME sector

Union Home Minister Amit Shah praised Reserve Bank of India for delivering a new set of monetary stimulus to financial markets on Friday saying that steps will help farmers, small businesses and financial institutions. RBI anunced a Rs 50,000 crore special finance facility to financial institutions such as NABARD, SIDBI and NHB that will inject liquidity into agriculture, real estate and MSME sector.

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RBI's monetary stimulus

RBI cut reverse repo rate and anunced a slew of measures including a re-finance window of Rs 50,000 crore and Targetted Long Term Repo auction of a similar amount to deal with impact of COVID-19 pandemic. central bank's Goverr Shaktikanta Das assured that RBI will use all instruments at its disposal to deal with challenges posed by outbreak of vel coronavirus, depending on evolving situations. This is t last of anuncements. Based on evolving situations, central bank will come up with responses in future in interest of ecomy, he said.

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In his dress, RBI goverr thanked people involved in essential services. Quoting IMF, RBI goverr said that 1.9% GDP growth for India is highest in G20 countries. He ded that India is expected to post a sharp turnaround in 2021-22. He anunced that RBI has cut reverse repo rate under liquidity justment facility (LAF) from 4% to 3.75%. This will encour banks to lend to productive sectors of ecomy.

Stating that RBI is monitoring situation developing out of COVID-19 outbreak, Shaktikanta Das ted that contraction in exports in March at 34.6% much more severe than global financial crisis of 2008-09. 

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