RBI steps in to avoid financial crunch in India. To ensure smooth flow of finance to all stakeholders. RBI lowered reverse repo rate by 25 basis points to 3.75%; no change in repo rate. Ensured liquidity for Non-Banking Finance Companies. Opened a refinance window for all financial companies. The platform can be used to finance MSMEs and housing finance companies. RBI also announced extra Rs 50,000 Cr under its targeted long-term repo operations (TLTRO). At least 10% of TLTRO should be invested in MFIs. Banks should extend the moratorium to all without naming ‘defaulter’. RBI also raised Ways and Means Advances (WMAs) by 60%.
