Repo rate cut by RBI

RBI has cut repo by 75 bps to 4.4% and reverse repo has been cut by 90 bps to 4%. CRR has been cut by 1% to 3%.

CRR cut will inject 1.37 lac Cr. Banks have to invest extra liquidity in Corporate commercial papers of investment grade.

No interest on working capital for 3 months and EMI on term loans will be deferred by 3 months.

These will not be classified as NPA’S. Banks can also participate in NDF markets , which will be helpful for Currency markets.

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