<p>RBI Governor Shaktikanta Das addressed the media on Friday in the wake of the coronavirus outbreak in India and announced fiscal measures to contain the impact of COVID-19 on the Indian economy. </p>.<p>Here are the five key takeaways from his address:</p>.<p>1. The RBI cut repo rate by a whopping 75 bps to 4.4% from 5.15%. It also reduced the reverse repo rates by 90 basis points.</p>.<p>2. Das announced EMI relief by deferring EMI payments on long-term loans for the next three months. All banks and shadow banks are being permitted to allow a moratorium of three months for repayment of instalments on term loans, Das said. He added that the non-payment of moratoriums will not be termed as default.</p>.<p>3. He said that COVID-19 stocks the global economy and the outlook is highly uncertain and negative. Several nations are battling its exponential contagion. Countries are shutting down to prevent being sucked into a kind of black hole. There is a rising probability that large parts of the world will slip into recession, he said. </p>.<p>4. The RBI reduced the Cash Reserve Ratio (CRR) of all banks by 100 basis points to 3% of Net Demand and Time Liabilities with effect from the fortnight beginning March 28 for a period of one year. </p>.<p>5. In spite of the challenging environment, I remain optimistic, says Das. "This too shall pass," he adds.<br /> </p>
<p>RBI Governor Shaktikanta Das addressed the media on Friday in the wake of the coronavirus outbreak in India and announced fiscal measures to contain the impact of COVID-19 on the Indian economy. </p>.<p>Here are the five key takeaways from his address:</p>.<p>1. The RBI cut repo rate by a whopping 75 bps to 4.4% from 5.15%. It also reduced the reverse repo rates by 90 basis points.</p>.<p>2. Das announced EMI relief by deferring EMI payments on long-term loans for the next three months. All banks and shadow banks are being permitted to allow a moratorium of three months for repayment of instalments on term loans, Das said. He added that the non-payment of moratoriums will not be termed as default.</p>.<p>3. He said that COVID-19 stocks the global economy and the outlook is highly uncertain and negative. Several nations are battling its exponential contagion. Countries are shutting down to prevent being sucked into a kind of black hole. There is a rising probability that large parts of the world will slip into recession, he said. </p>.<p>4. The RBI reduced the Cash Reserve Ratio (CRR) of all banks by 100 basis points to 3% of Net Demand and Time Liabilities with effect from the fortnight beginning March 28 for a period of one year. </p>.<p>5. In spite of the challenging environment, I remain optimistic, says Das. "This too shall pass," he adds.<br /> </p>