RBI Governor Shaktikanta Das today assured the country that in spite of lockdown, the sowing of pre-monsoon Kharif crop has been aggressive.- He also said that we are at all-time highs in terms of agricultural production.
- Experts have been asking and seeking a second stimulus ever since the government extended the lockdown till May 3.
As per this special refinance scheme, the said amount will be routed via government organizations like NABARD, SIDBI and NHB. These institutions will help microfinance companies, shadow banks have more at hand to lend, and lend more to small businesses which are in desperate need for help.
Calling it targeted longer-term refinancing operations (TLTRO 2.0), the governor also reduced reverse repo by 25 basis points from 4% to 3.75%, to ensure banks lend more of their excess funds, rather than keeping them parked at the RBI.
Reverse repo rate is the rate of interest that the RBI pays banks for funds they park with it. He also assured the country that in spite of lockdown, the sowing of pre-monsoon Kharif crop has been aggressive.
“States like Chhattisgarh, Odisha, West Bengal and others have been leading the sowing,” Das said today. He also said that we are at all-time highs in terms of agricultural production.
“We have huge buffer stocks of rice and wheat - far in excess of buffer norms. Rice — up by 30% as compared to Kharif of 2019. IMD forecast also normal monsoon. Rainfall expected to be at 100%,” he said.
All this will ensure rural demand and will be supported by accelerating fertilizer production, he said.
“We will do whatever it takes to prevent the epidemiological spread of the pandemic,” Das said in his speech today. He thanked the RBI colleagues and bankers who are risking their lives to maintain essential services like financial markets, currency circulation and more.
Experts have been asking and seeking a second stimulus ever since the government extended the lockdown till May 3. A large number of sectors including airlines, hospitality and even real estate have been seeking tax breaks and other stimulus packages to help them ‘stay above water’.
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