No need to panic, Indian banks are safe and stable, says RBI Governor Shaktikanta Das

WION Web Team New Delhi, Delhi, India Mar 27, 2020, 10.47 AM(IST)

File photo: RBI Governor Shaktikanta Das. Photograph:( Zee News Network )

Story highlights

"Public should not worry about their deposit in private sector banks, they should not resort to panic withdrawal," said RBI governor.

A day after Finance Minister Nirmala Sitharman announced a Rs 1.7 lakh crore relief package for the poor of the country, Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that Indian banking sector is safe and deposit of bank customers is safe.

Also read: Centre announces coronavirus stimulus package; promises cash transfer, food provision

"Public should not worry about their deposit in private sector banks, they should not resort to panic withdrawal," said RBI governor.

Here are the top highlights of RBI Governor Shaktikanta Das's press conference

  • RBI cuts repo rate by 75 bps to 4.4% from 5.15%. It cuts reverse repo rates by 90 basis points.
  • Cash Reserve Ratio (CRR) cut by 1% to 3%. 
  • Minimum daily CRR maintenance will be 80%
  • All Banks, HFCs, NBFCs allowed 3 months moratorium for EMI

On Thursday, Union Finance Minister Nirmala Sitharaman announced a Rs 1.7 lakh crore relief package under Garib Kalyan Yojana — in the wake of the lockdown imposed due to the spurt in coronavirus cases in the country. The tally now stands at 735 — with 17 deaths.

Prime Minister Narendra Modi on Tuesday announced a 21-day lockdown to stem the growth of coronavirus in the country.

Meanwhile, Moody's Investors Service on Friday slashed its estimate of India's GDP growth during the 2020 calendar year to 2.5 per cent from an earlier estimate of 5.3 per cent, on account of the rising economic cost of the coronavirus pandemic.

This compares to 5 per cent growth in 2019.

Moody's said, at the 2020 estimated growth rate, a sharp fall in incomes in India is likely, further weighing on domestic demand and the pace of recovery in 2021.

(With inputs from agencies)