Important measures are taken by RBI in the recent past to preserve the financial stability of the country

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…

RBI revises its liquidity management framework: LTRO introduced in place of 14 days fixed term repo

As announced in the Statement on Developmental and Regulatory Policies of February 6, 2020, the Reserve Bank of India has decided to revise its liquidity management through which it controls cash in the banking system to rationalise interest rates in line with the policy actions. Instruments of liquidity management will include “fixed and variable rate…