The Reserve Bank Of India (RBI) cut its Reverse repo rate cut by 25 basis points and also announced various others measures like LTRO to boost liquidity in the system. RBI is aiming to maintain liquidity in the system, to facilitate and incentivise bank credit flows, to ease financial stress and to enable formal working of markets. RBI noted that economic activities have come to a standstill during lockdown. A Rs 50,000 crore special finance facility is to be provided to financial institutions such as Nabard, Sidbi and NHB. RBI would conduct TLTRO 2.0 operations of Rs 50,000 crore. The LCR requirement of scheduled commercial banks being brought down from 100% to 80% with immediate effect.
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