Focusing on the light during the darkest moment- RBI's another stimulus package

The central bank announced a special Rs 50,000 crore targeted long-term repo operation, called TLTRO 2.0, to address the liquidity needs of the NBFCs and microfinance institutions. Banks availing these funds will be required to deploy the same within one month and 50 per cent of the money has been earmarked for midsized NBFCs and MFIs.

RBI also eased the liquidity coverage ratio (LCR) requirement of scheduled commercial banks from 100 per cent to 80 per cent with immediate effect.

The apex bank asked banks not to make any further dividend payout in view of financial difficulties arising from Covid 19.

The RBI Governor also announced a Rs 50,000 crore special finance facility to all-India financial institutions such as Nabard, Sidbi, NHB as they are not being able to raise fresh resources from the market due to the tightening of the market.

Das said banks and financial institutions have risen to occasion to ensure normal functioning during the outbreak of the pandemic.

He said the macroeconomic landscape has deteriorated severely in some areas, but added that India still is among handful of countries, projecting positive growth.

"During our darkest moment,we mustfocus on thelight,”said the RBIGovernor.