RBI's step will enhance liquidity and improve credit supply: Narendra Modi

"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," Modi tweeted hours after Das announced the measures during his briefing.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday announced reducing the reverse repo rate from 4 percent to 3.75 percent.

"RBI cuts reverse repo rate from 4 percent to 3.75 percent," RBI Governor Shaktikanta Das said in his briefing at a time when the nation is combating against COVID-19 outbreak.

Giving hope to the nation at a time when it is fighting against COVID-19 outbreak, Shaktikanta Das said International Monetary Fund (IMF)’s projection of 1.9 percent GDP growth for India is the highest of all G20 countries.

"IMF projection of 1.9% GDP growth for India is highest in G20," he said in his address.

"India is expected to post sharp turnround in 2021-22," said the RBI Governor quoting IMF projection.

This is the second time Das addressed the media since the implementation of the lockdown on Mar 25.

"It is during our darkest moments that we must focus on light," he said.

“Banks and financial institutions have risen to the occasion and ensured smooth functioning. Their efforts are praise-worthy," RBI Governor Shaktikanta Das said in his briefing.

Announcing measures to tackle the situation, he said: "Rs 50,000 crore special finance facility to be provided to financial institutions such as Nabard, Sidbi, NHB."

RBI monitoring situation developing out of Covid-19 outbreak," he said.

The Indian government has extended the lockdown till May 3 this week to combat the disease which is believed to have first originated from China.