Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday cut interest rates by 75 basis points to 4.4 per cent.
He also announced several measures to inject Rs 3.74 lakh crore liquidity into the system.
The RBI said it was maintaining its ‘accommodative’ stance, and would maintain its position ‘as long as necessary’ to revive growth, while ensuring inflation remained within target.
This came a day after finance minister Nirmala Sitharaman released a Rs 1.7 lakh crore package to combat the impact of the 21-day coronavirus lockdown,
RBI has last reduced CRR on February, 2013, by 25 basis points.
Rupee rallies 81 paise to 74.35 against USD after RBI announced various measures to support economy.
RBI to undertake repo operation of up to Rs one lakh crore to infuse liquidity into market
Moratorium on term loan, deferring of interest on working capital will not classify as default, not to impact credit history of borrower.
Das also said funds at banks are safe, asking people no need for panic withdrawal.
The RBI Governor said it is fallacious to link share prices with safety of deposits.
RBI Governor also said it will continue to remain vigilant and take whatever steps are required to mitigate the impact of Covid-19.