The Reserve Bank of India (RBI) on Monday said it would support crisis-hit Yes Bank with liquidity if the need arises. The central bank did not announce any rate cuts which are seen as a quick-fix whenever a country is in the middle of market uncertainty or hit by an economic slowdown. However, RBI Governor Shaktikanta Das did not rule out any possibility. Meanwhile, RBI announced another round of USD 2 billion dollar-rupee swap on March 23 and up to Rs 1 lakh crore of long-term repo operations as and when the market needs it.
RBI PRESS CONFERENCE: HIGHLIGHTS
- Swift action has been taken by the RBI and Govt of India. The lifting of moratorium will be on Wednesday, 18th March at 6 pm.
- I would like to convey to the depositors of Yes Bank, through you, that their money is completely safe and there is nothing to worry about. There is no reason for any undue worry.
- India is not immune to this pandemic, already more than 100 cases have been reported. Effort are being mounted by the govt on war-footing. COVID-19 could impact India directly through trade channels, in which exposure to China is relatively high.
- Second round of effects of the pandemic could operate through a slowdown in the domestic economic growth & it would obviously be a result of synchronised slowdown in global growth and as a part of that, the growth momentum in India would also be impacted somewhat.
- Sectors such as tourism, airlines, hospitality industry and domestic trade&transporters are suffering a loss of activity. Spillovers are being transported through finance&confidence channels to overseas and domestic equity markets. Forex & Bond markets are also not immune.
- As far as Indian economy is concerned, India is relatively insulated from global value chain, to that extent impact on India will be less. But India is integrated to global economy so there'll be some impact. We're evaluating and we'll announce it when we hold Policy meeting.