Chennai: Reserve Bank of India Governor Shaktikanta Das today said there will be gradual revival of activity and demand by the second half of FY-2021.
Speaking to the media, he said that gross domestic product will remain in negative territory this year with some pickup in pulses segment.
He said: “The Group Exposure Limit of banks is being increased from 25% to 30% of eligible capital base for enabling the corporates to meet their funding requirements from banks. The increased limit will be applicable up to 30th June, 2021.”
According to Das, measures announced today can be divided into four categories: to improve functioning of markets, to support exports & imports, to ease financial stress by giving relief on debt servicing and better access to working capital and to ease financial constraints faced by State governments.
He added: “India’s foreign exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15 May, foreign exchange reserves stand at 487 billion US dollars.”