Reserve Bank of India Governor Shaktikanta Das today announced a series of steps to help revive the Indian economy, including cutting its reverse repo rate by 25 basis points to 3.75 percent even as it said it would launch long-term repo operations (TLTROs) worth Rs 50,000 crore to help non-banking financial companies.

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Besides, RBI said it would also provide a Rs 50,000 crore refinance facility for institutions such as NABARD, SIDBI and NHB.

The central bank eased asset classification norms saying that for all accounts where moratorium or deferment has been applied, there would be an asset classification standstill.

"Banks will be required to maintain additional provisioning of 10% on standstill accounts," Das said.

Further, it said that due to the challenges of resolutions of accounts, the period of resolution will be increased by (further) 90 days. "For large accounts under default, additional provisioning of 20 percent is required for not implementing resolution in 180 days."

It lowered banks' liquidity coverage requirement from 100 percent to 80 percent with immediate effect for all scheduled commercial banks.

At the start of the conference, the governor said "humanity faces the trial of its time" even as he said the Indian economy could do better than others, citing the IMF's growth forecasts.

Still, Das added that the RBI stood ready to act, and said the central bank would act again if needed.

Besides today's steps, the RBI had announced liquidity measures to the tune of Rs 2.7 lakh crore on March 27.

This is a developing story. Please check back for updates.

First Published:Apr 17, 2020 10:27 AM IST