The central bank will also conduct Long Term Repo Operations (LTRO) in multiple tranches upto Rs 1 lakh crore.
The Reserve Bank of India (RBI) governor Shaktikanta Das held a press conference at 4 pm on Monday as market mayhem continued due to concerns of coronavirus pandemic.
In light of the coronavirus outbreak in India, the RBI Governor proposed to carry out a US Dollar-Rupee sell/buy swap on 23 March to enhance liquidity in the market. The central bank will also conduct LTRO up to Rs 1 lakh crore in multiple tranches at the present policy rate.
The RBI Governor during his address stated that the impact of coronavirus on the Indian Economy will be taken into account by the monetary policy committee (MPC). He added that any decision with regards to interest rate cut will be taken by the MPC.
The governor further added that the RBI also stands ready to take any required action to mitigate the impact of the coronavirus on the Indian economy.
Meanwhile, the S&P BSE Sensex closed 2713.41 points or 7.96% lower at 31,390.07.
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