Steps announced by the Reserve Bank of India will provide liquidity for growth, Commerce and Industry Minister Piyush Goyal said.
The RBI on Friday further eased bad-loan rules, froze dividend payment by lenders and pushed banks to lend more by cutting the reverse repo rate by 25 basis points, as it unveiled the second set of measures to support the economy hit hard by the coronavirus-led slowdown.
"Today's steps by RBI will provide liquidity for growth and help India emerge as a world leader in a post COVID-19 world," he said in a series of tweets.
The minister said that exclusion of moratorium period from 90 day NPA norm will help borrowers, while simultaneously the health of banks is being maintained through 10 per cent higher provisioning and stopping dividends for the year.
"Liquidity in the economy will be ensured as banks are being encouraged to lend by reducing Reverse Repo Rate by 0.25 per cent while banks which are facing liquidity issues will benefit from reduction in liquidity coverage ratio," he added.