Sri Lanka to seek $400m financial facility from RBI

Sri Lanka is set to enter into an agreement with the Reserve Bank of India for a currency swap worth $400 million to boost the foreign reserves and ensure the financial stability of the country which is badly hit by the COVID-19 pandemic, a top minister has said. Cabinet approved the proposal, enabling RBI to meet short-term international liquidity requirements.

‘RBI’s steps will enhance liquidity, improve credit supply,’ says PM Modi

PM Narendra Modi said that the RBI’s announcements “will greatly enhance liquidity and improve credit supply” in the system. PM Modi tweeted — “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.”

RBI announces steps to infuse Rs 1.37L cr liquidity

Amid stress in the financial system due to COVID-19, the Reserve Bank of India (RBI) on Friday announced measures to inject Rs 3.74 lakh crore into the banking system through a slew of instruments, including the reduction in cash reserve ratio. The other liquidity support measures included targeted long-term repo operation (TLTRO) and increasing the limit under the marginal standing facility (MSF) to 3 per cent from 2 per cent.

Banks seek RBI nod for relief to borrowers hit by Covid-19

Relief to coronavirus-hit borrowers from being classified as defaulters and additional funding to help businesses tackle a shutdown are measures that lenders want the regulator to allow to help tide over the pandemic-triggered economic shock. The Indian Banks Association (IBA) has also created a working group to study the economic fallout of the coronavirus pandemic.

RBI to buy government bonds to boost liquidity

The Reserve Bank of India (RBI) will buy bonds on the open market for a total of Rs 10,000 crore ($1.35 billion) on Friday to try to keep all market segments liquid and stable, the central bank said on Wednesday. Spreads between government bonds and corporate bonds have risen in recent days because of the extreme risk aversion that has led investors to dump all assets including Indian bonds.