- Due to Coronavirus (COVID-19), RBI Governor Shri Shaktikanta Das said the Reserve Bank of India reduced the Repo Rate by 75 basis points (bps) to 4.4%. Whereas, RBI has also reduced;
- Cash Reserve Ratio (CRR) by 100 bps to 3%.
- Liquidity Adjustment Facility (LAF) by 75 bps to 4.40% from 5.15%.
- Marginal Standing Facility (MSF) & Bank Rate are reduced to 4.65% from 5.40%.
- Objective,
The objective to reduce Repo Rate is to encourage banks to give more to business rather than deposit it with RBI.
Published On : 27 Mar 2020
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