Special Liquidity Facility for Mutual Funds provides on tap repo funding to banks for on lending and purchases to ease MF liquidity.
The Reserve Bank opened an on tap Special Liquidity Facility for Mutual Funds allowing banks to obtain repo funding at the fixed policy rate to on lend to mutual funds or to purchase/repo against investment grade corporate bonds, commercial paper, debentures and certificates of deposit held by mutual funds. Funding under the facility may be classified in the held to maturity portfolio beyond normal limits, is excluded from the Large Exposure Framework, does not count toward adjusted non food bank credit for HTM securities, and is exempt from banks' capital market exposure limits; operational terms align with LAF norms including eligible collateral, haircuts, bid mechanics and security substitution.

Fiscal response must be carefully designed to address revenue shortfalls and support gradual, uneven economic recovery across states.
Council members agreed pre March GDP projections must be revised downwards, recovery will be gradual and uneven across States, and the pandemic poses significant uncertainty for public finances requiring a nuanced fiscal response focused on design. Priority measures include targeted support for cash starved small enterprises, preventing distress in non banking financial companies (including partial loan guarantees and RBI led capitalization of financial institutions), monitoring Central and State finances with short term cash management options, planning financing for additional deficits, and ensuring States have timely access to funds.

Government securities auction using multiple price method permits non-competitive bids and when-issued trading under RBI rules.
The Government announced price-based re-issue auctions of three Government Stocks using the multiple price method, with the RBI conducting the auctions at its Mumbai office and offering up to 5% allocation to eligible individuals and institutions through the Non-Competitive Bidding Facility. Bids must be submitted electronically on the RBI's E-Kuber system within prescribed time windows on the auction date; results and payment dates are specified. The Stocks will be eligible for when-issued trading under existing RBI guidelines.

Electronic cards for overdraft accounts permitted; restricted to domestic non cash use and subject to bank Board policies.
Banks may issue electronic cards to natural persons with Overdraft Accounts in the nature of personal loans, provided card validity does not exceed the facility tenure and subject to lenders' rights. Card use is limited to domestic non cash/online transactions, with cash restrictions except for overdrafts linked to PMJDY accounts. Banks must have a Board approved policy addressing risk management, periodic review and grievance redressal; issuance must comply with existing debit card instructions, security and confidentiality requirements of the Reserve Bank.

Prior government approval for FDI from land border countries now required to curb opportunistic takeovers amid pandemic.
The Central Government amended the FEMA (Non debt Instruments) Rules to mandate prior government approval for any FDI where the investing entity or beneficial owner is situated in, or is a citizen of, a country sharing a land border with India, applying to both direct and indirect investments; the change channels such investments to the government approval route to prevent opportunistic takeovers during the COVID 19 pandemic while existing sectoral approval and prohibited sector rules remain operative.

HTM requirement for TLTRO funds mandates specified securities held to maturity; penalties apply for undeployed funds.
Banks availing TLTRO funds must maintain specified securities in their HTM book equal to the amount received until maturity; such securities are to be fresh acquisitions above pre-existing holdings and may remain in HTM until maturity. If classified as AFS/HFT at acquisition they cannot later be moved to HTM and must be separately identified. Deployment windows and market-source limits apply, with an incremental interest penalty for undeployed funds, and certain tranches impose issuer concentration caps that are tranche-specific.

Government securities auction using multiple-price method; reissues available with non-competitive bidding and electronic submissions on scheduled settlement dates.
Re-issue auctions of specified Government stocks will be conducted by the Reserve Bank of India using the multiple-price auction method, with an option to retain additional subscriptions up to a notified limit. Up to five percent of each notified amount is reserved for eligible individuals and institutions under the Non-Competitive Bidding Facility. Competitive and non-competitive bids must be submitted electronically via the E-Kuber system within prescribed time windows; results will be announced on the auction day and settlement will occur on the scheduled payment date. Securities are eligible for When Issued trading under RBI guidelines.

Multilateral development bank cooperation urged to expand emergency financial assistance for pandemic response and infrastructure support.
The minister urged enhanced multilateral financial cooperation via the New Development Bank to mobilise resources for infrastructure, sustainable development and pandemic response, commending NDB's credibility and calling for enlarged, fast-tracked emergency financing to assist member states. She outlined India's domestic COVID-19 measures-healthcare funding, social support for vulnerable groups, frontline worker insurance, regulatory relief for firms and monetary easing-and urged the NDB to adopt innovative practices, coordinate with other multilateral development banks and seek engagement with the G-20 to strengthen resource mobilisation for development and crisis response.

Land-border investor restrictions: foreign investments with beneficial owners from neighbouring countries now require government route and approval on ownership changes.
An entity of a country that shares a land border with India, or where the beneficial owner is a citizen of or situated in such a country, may invest in India only under the Government route; any transfer of existing or future FDI that results in beneficial ownership falling within this restriction will also require Government approval, effective from the FEMA notification date.

Sovereign Gold Bond issue price set with an online digital payment discount available to eligible electronic applicants.
Sovereign Gold Bond 2020-21 Series I fixes the bond's nominal value per gram by reference to the simple average closing price for 999 purity gold for the three business days preceding the subscription week and opens subscription from April 20-24, 2020. Eligible applicants who apply online and pay through digital modes receive a per gram discount off that nominal value, reducing the payable issue price for such digital online applications.

Treasury bill issuance calendar updated; government and central bank retain flexibility to modify auction amounts and timing.
Revised issuance calendar for Treasury Bills issued for the remaining quarter ending June 2020 sets weekly auction dates for 91 day, 182 day and 364 day instruments with consistent per auction allocations and aggregate quarterly totals. The Government, in consultation with the Reserve Bank, retains flexibility to modify notified amounts and timing based on cash management needs and market conditions, and any changes will be communicated by press release. All auctions are subject to the terms and conditions of the applicable General Notification governing Treasury Bill issuance.

Central bank liquidity measures expand bank credit and support NBFC funding through targeted LTRO and eased provisioning rules.
The Reserve Bank deployed monetary and regulatory measures to expand bank credit and boost liquidity by easing non-performing asset recognition rules, restricting bank dividend payouts, reducing the policy rate corridor, and instituting a targeted long-term repo operation (LTRO) to activate the corporate bond market and provide liquidity to NBFCs; forward guidance indicating softer inflationary pressure is said to create room for further monetary action.

Targeted liquidity provision via TLTRO 2.0 channels repo funding to NBFCs and MFIs with deployment and reporting conditions.
The Reserve Bank authorised Targeted Long Term Repo Operations (TLTRO) 2.0 to supply liquidity to small and mid sized corporates, NBFCs and MFIs, with repos at the policy rate for tenors up to three years. Funds must be invested in investment grade bonds, commercial paper and NCDs of NBFCs, with at least half the facility apportioned across MFIs and NBFCs in specified asset bands (asset size by latest audited balance sheet). Investments may be held to maturity beyond HTM limits and exposures under this facility are excluded from the Large Exposure Framework; deployment and reporting timelines are prescribed.

Digital payment infrastructure enabled prompt Direct Benefit Transfer relief using JAM-linked PMJDY and interoperable payment channels.
Digital payment infrastructure using Jan-Dhan-Aadhaar-Mobile (JAM) linkage and PMJDY accounts enabled prompt Direct Benefit Transfer (DBT) relief under the Pradhan Mantri Garib Kalyan package via interoperable modes-AePS, Bhim Aadhaar Pay, RuPay cards, UPI and BBPS-supporting cash and digital transactions at branches, BC points, merchant locations and online, and facilitating disbursement to scheme-specific beneficiary groups.

Government securities auction using multiple price method with retention option and non competitive bidding for individual allotment.
Sale of three central government securities will occur by scheduled auctions using the multiple price method, conducted by the Reserve Bank of India under specified General and Specific Notifications. The Government may retain additional subscriptions with set off mechanisms and aggregated caps. Up to five percent of each notified amount is reserved under a Non Competitive Bidding Facility for eligible individuals and institutions. Competitive and non competitive bids must be submitted electronically via the E Kuber system within prescribed windows; auction results and payment/settlement dates are fixed. The securities are eligible for When Issued trading under RBI guidelines.

Treasury bill auction schedule published; amounts and dates set for the quarter, subject to modification for market needs.
The Government of India, with the Reserve Bank of India, has notified an auction calendar for 91 day, 182 day and 364 day Treasury Bills for the quarter ending June 2020, specifying auction dates and aggregate notified issuance amounts. The calendar is subject to modification at the Government/RBI's discretion for financing requirements, market conditions and other factors, with changes communicated by press release. Auctions will be conducted under the terms and conditions set out in the referenced General Notification, as amended.

Issuance calendar for government dated securities published; auctions include 5% reserved non-competitive bidding and green-shoe flexibility.
The issuance calendar sets weekly auctions of Government dated securities for April-September 2020, specifying security types and notified amounts. Each auction will permit a non-competitive bidding facility reserving five per cent for specified retail investors. The Reserve Bank of India, in consultation with the Government, may modify amounts, maturities and instrument types, exercise green-shoe options to retain additional subscriptions within overall notified amounts and conduct monthly switch auctions; auctions remain subject to the terms and conditions of the referenced government notification.

Loan moratorium relief postpones EMI and interest payments while preserving asset classification and requiring accrued interest recovery.
A temporary moratorium permits deferment of scheduled installments and interest on term loans, EMIs, working capital facilities and credit card dues for accounts that were standard on the reference date, with contractual tenors extended accordingly; interest continues to accrue and must be recovered later, no penal charges will be levied, and the measures do not constitute loan restructuring or trigger asset classification downgrade.