A day after Narendra Modi government announced Rs 1.75 lakh crore relief package to support the economy during this crisis, RBI also joined in the fight against Coronavirus as it announced a slew of measures in order to mitigate economic risks.

Here are few major developments that the RBI announced today:

• The RBI’s MPC has voted in favour of an interest rate cut to the tune of 75 basis points, which brings the repo rate down to 4.4 per cent from 5.15 per cent. The reverse repo rate has also been reduced by 90 basis points to 4 per cent in a bid to maintain financial stability and revive growth.

• “The outlook is now heavily contingent upon the intensity, spread and duration of the pandemic. There is a rising probability that large parts of the world will slip into recession,” RBI governor Shaktikanta Das said.

• It also announced that banks are permitted to allow a three-month moratorium for on payment of EMIs on all term loans that were outstanding on March 1.

• It has been decided to reduce the Cash Reserve Ratio (CRR) of all banks by 100 basis points to 3% of Net Demand and Time Liabilities with effect from the fortnight beginning March 28 for a period of 1 year.

• Das assured that the fundamentals of India’s economy are sound and added that it will continue to support the economy as long as required. “Tough times never last, only tough people and institutions do. The RBI is at work and at mission mode. Will do everything required to mitigate the effects of Covid-19 pandemic,” he said.