RBI measures sufficient, not substantial; Guv doing balancing act: Experts

RBI governor is walking a tightrope, says a former chief statistician

The Reserve Bank of India Governor Shaktikanta Das on Friday said the central bank will ensure adequate liquidity in the system to ease the financial stress caused due to coronavirus crisis. RBI reduced the reverse repo rate by 25 basis points to 3.75 per cent.

He also said that RBI will begin with giving an additional Rs 50,000 crore through targeted long-term repo operation (TLTRO) to be undertaken in tranches. Besides, he announced a re-financing window of Rs 50,000 crore for financial institutions like Nabard, National Housing Bank and Sidbi.

The banking and finance industry welcomed new measures, but reacted