Reaction to Measures announced by RBI in Seventh Bi-monthly Monetary Policy Statement
MD and CEO PNB Shri CH.S.S. Mallikarjuna Rao
RBI's decision has been very bold in terms of addressing current challenges faced by the economy. All the measures taken, whether Repo rate reduction, CRR cut, TLTRO, moratorium on repayments, infusion of liquidity, etc have been unprecedented and in right context.
The 3month moratorium on all term loan installments along with deferment of interest on working capital will help mitigate the debt servicing burden due to COVID-19 disruption and prevent transmission of financial stress among various sectors of the economy.
Total liquidity injection of RS 3.74 lakh crore through TLTRO, CRR & MSF will address the liquidity stress in view of highly volatile financial markets. Considering the potential stress, the last tranche of 0.625 percent of CCB has also been deferred to Sept' 30 2020.
However challenges remain in terms of transmitting these measures to customers amid social distancing. Effective digital and electronic delivery to the last mile will remain the key issue.