Here are the key announcements made by the RBI governor on May 22.

· Repo rate has been cut by 40 bps to 4%. This is in addition to the 75 bps rate that the RBI had implemented in its previous policy in late March.

· The loan moratorium has now been extended till August 31 for a total period of 6 months. This was earlier for 3 months up to May 31.

· RBI governor has projected even after the lockdown is lifted, economic activity may be subdued in Q2 with some signs of pick up only in Q3.

· To ease the loan pressure, RBI has enhanced group exposure limit for lenders to corporates from 25% to 30%. Export credit period extended from 12 to 15 months.

· Like on the pervious occasion, the MPC met out of normal cycle and retained its accommodative stance, which is positive.

· Reverse repo rate stands reduced to 3.35%, making it unattractive for banks to park funds with the central bank. RBI will extend Rs.15,000 crore line of credit to EXIM Bank.