Highlights of RBI’s monetary statement

Following are the highlights of the seventh bi-monthly monetary statement for 2019-20 by the RBI amid COVID-19 pandemic:

* Monetary Policy Committee (MPC) advances meeting scheduled for Apr 1-3

* Repo rate slashed by 75 basis points to 4.4%

* Reverse repo rate cut sharply by 90 basis points to 4% making unattractive for banks to deposit funds

* MPC votes unanimously for a reduction in the policy repo rate

* MPC decides to continue with the accommodative stance as long as it is necessary

* Committee votes 4:2 in favour of rate cut; unanimous on change in stance

* 2 MPC members Chetan Ghate and Pami Dua voted for a 50 bps rate cut

* Several measures taken to infuse liquidity of about Rs 3.74 lakh crore into the financial system

* RBI to undertake repo operation to infuse Rs 1 lakh crore

* Cash Reserve Ratio (CRR) cut sharply by 100 bps to 3 per cent releasing Rs 1.37 lakh cr into the system

* RBI assures to work in mission mode, monitoring the evolving financial market and macroeconomic conditions

* MPC for the first time advances meeting date and refrains from giving next meeting date in the wake of evolving situation

* GDP growth rate of 5% for 2019-20 at risk from the impact of pandemic

* Global slowdown to deepen with adverse implication for India; crude oil slump upside for country

* Upside growth impulses to emanate from monetary, fiscal measures and the early containment of COVID-19

* Food prices to soften further on back of record foodgrain production

* MPC refrains from giving out growth, inflation outlook for coming fiscal on uncertain outlook

* RBI permits all lending institutions to allow 3-month moratorium on payment of installments on term loans

* Moratorium on term loan, deferring of interest on working capital will not classify as default

* RBI urges banks and other financial institutions to do all they can to keep credit flowing

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