Welcoming a slew of financial measures announced by the Reserve Bank of India (RBI), Prime Minister Narendra Modi said on Friday that these steps would improve liquidity and credit supply and also help small businesses, farmers and poor as Home Minister Amit Shah and BJP President JP Nadda maintained that they would go a long way in making the country strong, ensuring “minimum disruption” in people’s lives.
"Today’s announcements by @RBI will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits," Prime Minister said on Twitter.
Union Home Minister said that the Modi-led Central government is leaving no stone unturned in the fight against COVID-19, "ensuring minimum disruption in people's lives while planning for a strong and stable India in days ahead".
"Modi government is leaving no stone unturned in this fight against COVID-19, ensuring minimum disruption in people's lives while planning for a strong and stable India in days ahead. Steps taken by RBI today, to boost Indian economy, further reinforce Prime Minister Narendra Modi's vision," Shah tweeted.
"RBI's decision to extend 25000 cr credit facility to NABARD will greatly help our farmers, 15,000 cr to SIDBI will provide much needed financial stability to MSMEs and startups, boost the Make in India program. 10,000 cr to NHB and liquidity measures for Banks and NBFCs will help too," he said.
BJP president J P Nadda said the RBI measures to deal with the crisis caused by coronavirus will help protect the livelihoods of people by infusing liquidity and improving credit flow. Under the leadership of Prime Minister Narendra Modi, the government is taking all necessary steps to help the economy cope with this crisis arising out of COVID-19”, Nadda said.
“Initial Rs 50,000 cr to support small & mid NBFCs, refinance facilities of Rs 25,000 cr to NABARD to help farmers, Rs 15,000 cr to SIDBI to boost loans to start-ups & SMEs, Rs 10,000 cr to NHB to support housing for all, will prove to be significant steps,” the BJP president tweeted, citing various measures announced by RBI Governor Shaktikanta Das.
The RBI Governor earlier in the day announced a reduction in reverse repo rate by 25 basis points from 4 per cent to 3.75 per cent to facilitate bank credit flows amid the coronavirus crisis and subsequent countrywide lockdown which has brought economic activity to a virtual halt. However, it kept the repo rate unchanged. He also announced conducting of targeted long-term repo operation (TLTRO) with Rs 50,000 crore to maintain liquidity in the system, incentivise bank credit flows and enable normal functioning of the market.