Chennai: RBI Governor Shaktikanta Das today said the priority is to undertake strong and purposeful action to protect domestic economy.
“Need for all stakeholders to fight against the pandemic and banks should do all they can to keep credit flowing,” he added.
Speaking to the media in Mumbai, he said, “measures will result in total liquidity injection of Rs 3.74 lakh crore to system.”
“Large sell offs in markets have intensified pressure. RBI will conduct auctions of long term repo operation (LTRO) of three-year tenure upto Rs1 lakh crore at floating rate linked to policy rate,” he added.
“Appropriate that MPC decisions and other RBI actions must be seen as a comprehensive package with force multipliers. First are measures to expand liquidity in the system. Strong fiscal steps necessary to deal with situation, steps to enforce monetary transmissions and efforts to ease financial stress caused by COVID-19,” he said.