Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday a significant reduction in the repo rate to help the state’s financial system in the run-up to the coronavirus pandemic.
“Monetary police voted to reduce their repo rate by 75 basis points – to 4.4 percent. The reverse repo rate was reduced by 90 basis points to four percent, “Das said at a press conference in Mumbai.
“Now it will be unproductive for banks to park money through IRC, they will have to give it to people,” Das said.
“Hard times never last, only hard people and tough institutions do it,” he added.
That comes a day after the aid package announced by the government to eliminate the economic mess caused by the coronavirus pandemic.
Finance Minister Nirmala Sitharaman on Thursday announced a package of Rs 1.70,000 crore under the new program, the Pradhan Mantri Gareeb Kalyan Yojana (PMGKBY), to address the immediate economic distress caused by a coronavirus (Covid-19) pandemic cover-up and ensure that food and cash reach marginalized segments of society.
At a press conference in New Delhi, Sitharaman announced a series of measures that focused on additional food transfers without any money, cash for vulnerable segments, concessions to government programs designed to help households reduce consumption and support those at the forefront of the battle against the pandemic.
Sitharaman underscored that within 36 hours of the closure – Prime Minister Narendra Modi had led a national shutdown for three weeks on Tuesday night – the government had taken measures to take immediate care of the welfare of the poor. However, it did not address the fiscal implications of the scheme, nor did it announce measures for other sectors that were also severely affected after the restrictions and closures.
Sitharaman also described health insurance plans worth 50 lhh per person for every healthcare professional, from doctors, nurses and nurses to those involved in sanitation.
. (ToTranslate tags) coronavirus