TLTRO is acronym to Targeted Long Term Repo Operation (TLTRO). The scheme was introduced by Reserve bank of India as a tool to enhance the liquidity to sectors and entities experiencing liquidity constraints and/or hindrances to market access in the wake of the COVID-19 crisis. For a second time on April 17, 2020, RBI has…
As part of Basel III Framework on Liquidity Standards, banks are required to maintain High Quality Liquid Assets (HQLAs) to meet 30 days net outgo under stressed conditions. Banks in India are also required to hold liquid assets of 18 percent of their NDTL from April 11, 2020 to maintain Statutory Liquidity Ratio (SLR). Although…
Today (17.04.2020) RBI Governor Shaktikanta Das in a media statement announced new measures to maintain adequate liquidity in system to facilitate bank credit flow and ease financial stress. The measures include conducting of targeted LTRO of ₹50,000 crores, cut reserve repo rate by 25 basis points and eased NPA rules for banks. Further, banks are…
As announced today (17.04.2020) and set out in Governor’s Statement, the Reserve Bank of India declared reduction in the fixed rate reverse repo under the Liquidity Adjustment Facility (LAF) by 25 basis points from 4.00 per cent to 3.75 per cent with immediate effect. The policy repo rate under the LAF remains unchanged at 4.40…
In view of the disruption caused by COVID-19 pandemic, Reserve Bank of India extended the time period for repatriation of fully realised export proceeds for exports made up to or on July 31, 2020. As per the new direction issued by RBI on April 1, 2020, exporters are required to fully realize and repatriate the…
Reserve Bank of India today advised all the banks to be ready to conduct a Special Clearing exclusively for Government cheques at all clearing houses across the country on March 31, 2020. According to the regulator’s communication normal clearing timings as applicable to any working Tuesday shall be followed on March 31, 2020. Additionally, a…
In the Statement of Development and Regulatory Policies released on March 27, 2020, RBI released several regulatory measures to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to safeguard the continuity of viable businesses. The package includes Rescheduling of Term Loans and Working Capital payments, recalculate the…
Today (March 27, 2020), the Monetary Policy Committee (MPC) announced Seventh Bi-monthly Monetary Policy Statement, 2019-20 and slashed all the key policy rates. According to the announcement the MPC decided to advance its meeting scheduled for 31st March, 1st and 3rd April 2020 and met on 24th, 26th, and 27th March. As per the announcement…
RBI tells the public to use non-cash digital payment options (like NEFT, IMPS, UPI and BBPS) which are available round the clock to facilitate fund transfers, purchase of goods/services, payment of bills, etc. The above announcement of the Central Bank came in the light of the fallout of the Corona virus pandemic in India. The…
RBI on Thursday (12.03.2020) announced that it has been decided to undertake 6-month US Dollar sell/buy swaps to provide liquidity to the foreign exchange market in multiple tranches. The first tranch would be offered on March 16, 2020, for swap amount USD 2 Billion “On emerging Financial markets worldwide are facing intense selling pressures on…