Steps taken by RBI to boost Indian economy further reinforce PM Modi's vision: Amit Shah

Union Home Minister Amit Shah on Friday said that Prime Minister Narendra Modi-led Central government is leaving no stone unturned in the fight against COVID-19, "ensuring minimum disruption in people's lives while planning for a strong and stable India in days ahead".

He added that the decisions taken by the Reserve Bank of India on Friday to boost the Indian economy, further reinforce Prime Minister Modi's vision.

"Modi government is leaving no stone unturned in this fight against COVID-19, ensuring minimum disruption in people's lives while planning for a strong and stable India in days ahead. Steps taken by RBI today, to boost Indian economy, further reinforce Prime Minister Narendra Modi's vision," Shah tweeted.

"RBI's decision to extend 25000 cr credit facility to NABARD will greatly help our farmers, 15,000 cr to SIDBI will provide much needed financial stability to MSMEs and startups, boost the Make in India program. 10,000 cr to NHB and liquidity measures for Banks and NBFCs will help too," he added.

The RBI earlier today announced a reduction in reverse repo rate by 25 basis points from 4 per cent to 3.75 per cent to facilitate bank credit flows amid the coronavirus crisis and subsequent countrywide lockdown which has brought economic activity to a virtual halt. However, it kept the repo rate unchanged.

"The mission is to minimise the epidemiological damage in the country due to coronavirus. I want to convey the RBI's resolve and the way forward," said RBI Governor Shaktikanta Das.

He also announced conducting of targeted long-term repo operation (TLTRO) with Rs 50,000 crore to maintain liquidity in the system, incentivise bank credit flows and enable normal functioning of the market.

Banks will be required to invest 50 per cent of the funds under TLTRO 2.0 to small and mid-sized non-banking finance compes (NBFCs).

Das also announced a Rs 50,000 crore special refinance package for National Bank for Agriculture and Rural Development (NABARD Rs 25,000 crore), Small industrial Development Bank of India (SIDBI Rs 15,000 crore) and National Housing Bank (NHB Rs 10,000 crore).

( With inputs from ANI )