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A secret RBI team is fighting a parallel war against Covid-19

A secret RBI team is fighting a parallel war against Covid-19

According to a Business Standard report, the team, of about 150 people and from critical RBI wings like debt, reserve management, is part of the central bank’s business continuity plan to ensure Covid causes minimum disruption to the financial system.

The team, the report added, has been on it since March 19. This, according to another Mint report, is first such measure undertaken by the Central bank that will ensure that key information technology (IT) services for the delivery of digital banking.

The team, the report added, has been on it since March 19. This, according to another Mint report, is first such measure undertaken by the Central bank that will ensure that key information technology (IT) services for the delivery of digital banking, treasury services and cheque clearance are not disrupted by the outbreak, and also ensure the smooth running of RBI functions from secured data centres as nearly 14,000 staffers, except senior-most management, reportedly work from home

The BS report claims the team has been split into two. While one runs the checks, the other is on standby.

The central bank has hired a hotel in the vicinity of the primary data centre to accommodate the team, the Business Standard reported. Support staff of the hotel, comprising maintenance, security, kitchen, front desk, and administration, have also been isolated.

India’s central bank on Friday walked the talk on doing whatever it takes to contain the economic impact of Covid-19 by injecting more liquidity just days after Governor Shaktikanta Das cemented Mint Road’s credentials as a responsive regulator, assuring the man on the street about the safety of his savings at Yes Bank.

“On a review of the current liquidity and financial conditions, the RBI has decided to conduct purchase of government securities under OMOs for an aggregate amount of Rs 30,000 crore in two tranches,” the central bank said.

Later, RBI conducted a dollar-swap auction for $2 billion where it injected dollar liquidity. Similar operations will be conducted next Monday.

The RBI has taken a different approach from other central banks, including the Federal Reserve and the Bank of England, which slashed interest rates. The RBI on the other hand has been pushing liquidity to ensure that the interbank market doesn’t freeze and that banks are in a comfortable position.

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