Monetary Policy Report: RBI

The Reserve Bank of India (RBI) has released the Monetary Policy Report for the month of August 2020.
Repo rate remains at 4% and the reverse repo rate at 3.35%.
Retail inflation (measured by the Consumer Price Index - CPI) rose to 6.09% in June 2020 from 5.84% in March, breaching the central bank’s medium-term target of 4±2%.
RBI has allowed banks to restructure loans to reduce the rising stress on incomes and balance sheets of large corporates, Micro, Small and Medium Enterprises (MSMEs) as well as individuals.
However, only those borrowers will be eligible for restructuring whose accounts were classified as standard and not in default for more than 30 days with any lending institution as on 1st March, 2020.
The loan restructuring scheme will be worked out by a committee headed by KV Kamath (former ICICI Bank Chairman).
An additional special liquidity facility of Rs.10,000 crore, equally to be split between National Bank for Agriculture and Rural Development (NABARD) and the National Housing Bank (NHB) to help small financiers and home loan companies amid Covid-19 difficulties.
The liquidity facility to both NABARD and NHB will be offered at the policy repo rate.