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

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.

Today’s announcements by @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.

— Narendra Modi (@narendramodi) April 17, 2020

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.

Today's announcement by @RBI is in line with the vision of our PM to take steps which are business & people friendly. RBI had already taken some big steps on 27 March. These steps will go a long way to help PM Modi's effort to keep the economy strong during & after the pandemic.

— Jagat Prakash Nadda (@JPNadda) April 17, 2020

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.

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