Repo Rate cut by 75 basis from 5.15% to 4.4%
• Reverse Repo Rate reduced by 90 basis from 4.9% to 4.0%
• Economic Impact is gloomy and depends upon Intensity, spread and duration of Covid-19
• Food Inflation slightly up
• Food grain stocks sufficient
• Crude Oil prices down
• Outlook negative
• World economic recession in sight

*Measures/ Package Announced to address four critical areas*
*A. Liquidity*
*B. Reinforce bank credit*
*C. Ease financial stress by relaxing repayment*
*D. Improve functioning of Financial Markets*

• Auction of Term Lending
• CRR reduced by 100 basis points to 3%
Rs.1.37 lakh released in liquidity by this
• Reduce minimum daily balance from 90 to 80%
• Some other measures
Total impact of above measures: *3.74 lakh liquidity added*

• *Moratorium on Term Loans- All Banks, FIIs, NBFCs Permitted to allow 3 months moratorium*
• *Deferment of Interest on Working Capital: Allowed 3 months deferment*
• Shall not downgrade account or asset classification
• Reduce Margins
• Cannot be reported in CIBIL etc.
• Defer implementation of NSFR to 1st Oct
• Defer implementation of CCD to 30 September
• With above 2.8 lakh crore liquidity added

*3.2% of GDP added to liquidity*