Mr. Nish Bhatt, Founder & CEO – Millwood Kane International, an investment consulting firm on RBI announcement
“RBI announced a series of measures today, in an effort to boost liquidity, help the economy get back on track.
The Central bank announced measures to boost inject liquidity worth Rs. 50,000cr to ease the pressure in the system. As a part of this exercise, RBI will provide Rs. 10,000cr to National Housing Bank (NHB) to support
Housing Finance Companies, RBI also allowed NBFC to extend the Date of commencement for loans given to commercial real estate without treating it as a restructuring will provide relief to NBFC as well as the real estate sector.
While the policy rate unchanged at 4.40%, other key rates unchanged but the central bank slashing the reverse repo rate cut by 25 bps from 4% to 3.75% will discourage banks to park funds with it and lend to end-consumers. The real estate sector needs ease in lending rates to help boost demand.
In a move to relax regulatory requirements, RBI announced relaxation in asset classification for a period of 90 days. RBI expecting a sharp turnaround post-COVID-19 crisis and resolve to intervene in the future if need be will certainly boost sentiments”.