•The LCR requirement of scheduled commercial banks being brought down from 100 percent to *80 percent* with immediate effect.
•Period of resolution plan for *NPAs* to be *extended by 90 days*
•Clashflow of households and businesses affected. We recognise that COVID-19 has challenged the ability of borrowers to repay. Thus the *NPA count shall not* include the 90-day moratorium.
•Reverse repo rate is being reduced by *25 bps from 4% to 3.75%* under Liquidity adjustment facility (LAF)
•RBI undertook three long-term repo operations (TLTRO) to ease liquidity constraints. The *TLTRO option of Rs 25000 crore* is to be conducted today (April 17). In response to these auctions, financial conditions have eased considerably and activity in *corporate bond market has picked up.* *Redemption pressure faced by mutual funds* have also eased. RBI has been constantly monitoring situation and in our effort to see financial system is fully functional, we will announce additional measures.
•Pre-monsoon kharif sowing has been aggressive. Paddy is up by 37 percent in April vs last year. On April 15, the Indian Meteorogical Department (IMD) has forecast a *Normal* southwest monsoon, Rainfall expected at 100 percent of long term average.
•RBI has injected *3.2 percent* of GDP into the economy to tackle liquidity situation since February 6 to March 27.
•India expected to show a *sharp turnaround post the COVID-19 crisis.* India expected to post a sharp turnaround in FY22 with 7.4 percent growth as per IMF.
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