RBI cuts repo rate by 25 bps to 3.75 per cent

New Delhi, Apr 17 (KNN) Reserve Bank of India (RBI) on Friday cut reverse repo rate by 25 basis points to 3.75 per cent from 4 per cent, while policy repo rate remained unchanged.

''Taking measures to ensure adequate liquidity in the system, facilitate bank inflows, enable functioning of markets,'' RBI Governor said in a press conference.

RBI Governor Shaktikanta Das also unveiled measures to ease liquidity and bank credit; and to support the economy and enable normal functioning of markets as part of the economic relief to mitigate the fallout of coronavirus lockdown.

RBI will also provide special refinance facilities of Rs 50,000 crore to NHB, SIDBI and NABARD, Das said.

The apex banking body also announced that banks and cooperative banks shall not make any dividend pay-outs until further notice. It also said that NBFCs can grant relaxed NPA classification to their borrowers.

While quoting, International Monetary Fund (IMF) report, Das asserted that India is expected to post sharp turnaround by growing at 7.4 per cent in FY22.

''In 2020 global economy is expected to plunge into greatest recession. IMF estimates cumulative loss to global GDP in 2021, 2022 at USD 9 trillion,'' he added.

India expected to cling on to 1.9 per cent growth as estimated by IMF, he said.

While lauding the front warriors, the Governor said, ''deepest appreciation to health workers, police staff and other service providers at the frontline. Banks and financial institutions have risen to the occasion and provided services- their efforts are praiseworthy.''