RBI reforms will enhance liquidity; help MSMEs, farmers and poor: Modi

Earlier today, The RBI cut its reverse repo rate by 25 basis points (bps) to 3.75 per cent with immediate effect

PM
PM CARES was set up on March 28 this year following the COVID outbreak and had a corpus of ₹3,076.62 crore by March 31 itself. Photo PTI File

Hours after Reserve Bank of India (RBI) Governor Shaktikanta Das announced the central bank’s decision to cut down the reserve repo rate by 25 basis points to 3.75 per cent on Friday (April 17), Prime Minister Narendra Modi said measures taken by RBI would enhance liquidity, improve credit supply and help farmers, small business owners and the poor.

“Today’s announcements by the RBI will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits,” Modi tweeted.

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Seconding the prime minister, BJP president JP Nadda said the central bank’s decisions will help protect the livelihoods of people and improve credit flow into the economy.

Addressing his second press briefing since the COVID-19 outbreak in the country, Das, reduced the reverse repo rate by 25 basis points to 3.75 per cent. He also announced an additional ₹50,000 crore through targeted long-term repo operation (TLTRO) to be undertaken in tranches.

Related news | To ensure liquidity in system, RBI cuts reverse repo rate by 25 bps to 3.75%

 

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