Daily Analysis of 'The Hindu' - 18th April, 2020 | Additional Study Material for UPSC PDF Download

 Page 1


Helping a lending hand
?Second set of measures announced on Friday by
Governor Shatikanta Das
?RBI has infused oxygen into the financial system.
?Maintaining liquidity
?Regulatory proposals aimed at making life easier for banks,
NBFCs and borrowers
?It is now clear the bank prefers to calibrate its moves
based on constant feedback from the ground — the
way it should be.
?Mr. Das was categorical that the RBI would do what it
takes to support the economy and also monitor the
evolving situation.
Page 2


Helping a lending hand
?Second set of measures announced on Friday by
Governor Shatikanta Das
?RBI has infused oxygen into the financial system.
?Maintaining liquidity
?Regulatory proposals aimed at making life easier for banks,
NBFCs and borrowers
?It is now clear the bank prefers to calibrate its moves
based on constant feedback from the ground — the
way it should be.
?Mr. Das was categorical that the RBI would do what it
takes to support the economy and also monitor the
evolving situation.
?RBI has been very generous in its liquidity
maintenance measures in recent times and
particularly so after the lockdown began in March.
?The overarching objective now should be to keep
the economy afloat by deploying all the
instruments at the RB I’ s command.
? ?50,000 crore Targeted Long Term Repo
Operations
?Reduced REVERSE REPO RATE by another 25 basis
points to 3.75%.
?This is the time when banks will have to be
liberal in extending help for working capital loans
and overdrafts to their borrowers, including
MSMEs.
Page 3


Helping a lending hand
?Second set of measures announced on Friday by
Governor Shatikanta Das
?RBI has infused oxygen into the financial system.
?Maintaining liquidity
?Regulatory proposals aimed at making life easier for banks,
NBFCs and borrowers
?It is now clear the bank prefers to calibrate its moves
based on constant feedback from the ground — the
way it should be.
?Mr. Das was categorical that the RBI would do what it
takes to support the economy and also monitor the
evolving situation.
?RBI has been very generous in its liquidity
maintenance measures in recent times and
particularly so after the lockdown began in March.
?The overarching objective now should be to keep
the economy afloat by deploying all the
instruments at the RB I’ s command.
? ?50,000 crore Targeted Long Term Repo
Operations
?Reduced REVERSE REPO RATE by another 25 basis
points to 3.75%.
?This is the time when banks will have to be
liberal in extending help for working capital loans
and overdrafts to their borrowers, including
MSMEs.
?Asset classification standstill during the moratorium
period: relief for borrower
?State finances have got some breathing space through
the increase of WMA (Ways and Means Advances) limit
to 60% over the level as on March 31.
?The special refinance facility of ?50,000 crore
extended to NABARD, SIDBI and NHB will help these
institutions to prop up their respective constituents.
?The central bank has done what it can.
?It is now over to the government for the fiscal support
package.
Page 4


Helping a lending hand
?Second set of measures announced on Friday by
Governor Shatikanta Das
?RBI has infused oxygen into the financial system.
?Maintaining liquidity
?Regulatory proposals aimed at making life easier for banks,
NBFCs and borrowers
?It is now clear the bank prefers to calibrate its moves
based on constant feedback from the ground — the
way it should be.
?Mr. Das was categorical that the RBI would do what it
takes to support the economy and also monitor the
evolving situation.
?RBI has been very generous in its liquidity
maintenance measures in recent times and
particularly so after the lockdown began in March.
?The overarching objective now should be to keep
the economy afloat by deploying all the
instruments at the RB I’ s command.
? ?50,000 crore Targeted Long Term Repo
Operations
?Reduced REVERSE REPO RATE by another 25 basis
points to 3.75%.
?This is the time when banks will have to be
liberal in extending help for working capital loans
and overdrafts to their borrowers, including
MSMEs.
?Asset classification standstill during the moratorium
period: relief for borrower
?State finances have got some breathing space through
the increase of WMA (Ways and Means Advances) limit
to 60% over the level as on March 31.
?The special refinance facility of ?50,000 crore
extended to NABARD, SIDBI and NHB will help these
institutions to prop up their respective constituents.
?The central bank has done what it can.
?It is now over to the government for the fiscal support
package.
Page 5


Helping a lending hand
?Second set of measures announced on Friday by
Governor Shatikanta Das
?RBI has infused oxygen into the financial system.
?Maintaining liquidity
?Regulatory proposals aimed at making life easier for banks,
NBFCs and borrowers
?It is now clear the bank prefers to calibrate its moves
based on constant feedback from the ground — the
way it should be.
?Mr. Das was categorical that the RBI would do what it
takes to support the economy and also monitor the
evolving situation.
?RBI has been very generous in its liquidity
maintenance measures in recent times and
particularly so after the lockdown began in March.
?The overarching objective now should be to keep
the economy afloat by deploying all the
instruments at the RB I’ s command.
? ?50,000 crore Targeted Long Term Repo
Operations
?Reduced REVERSE REPO RATE by another 25 basis
points to 3.75%.
?This is the time when banks will have to be
liberal in extending help for working capital loans
and overdrafts to their borrowers, including
MSMEs.
?Asset classification standstill during the moratorium
period: relief for borrower
?State finances have got some breathing space through
the increase of WMA (Ways and Means Advances) limit
to 60% over the level as on March 31.
?The special refinance facility of ?50,000 crore
extended to NABARD, SIDBI and NHB will help these
institutions to prop up their respective constituents.
?The central bank has done what it can.
?It is now over to the government for the fiscal support
package.
A season of change
?IMD: monsoon this year would likely be normal
? ‘Normal ’ means India will get 100% of its long period
average, with a potential 5% error margin.
?The agency follows a two-stage forecast system:
1. Indicating in April whether there are chances of drought or
any other anomaly
2. Second update, in late June, with a more granular look at
how the monsoon will likely distribute over the country
and whether danger signs are imminent.
?The IMD’ s April forecast, experience suggests, is not
much to go by especially if the agency declares it
‘normal ’.