New Delhi: Reserve Bank of India governor Shaktikanta Das on Friday said the central bank will ensure adequate liquidity in the system to ease the financial stress caused by the COVIF-19 pandemic.The central bank reduced the reverse repo rate – the rate at which banks park their fund with the central bank – by 25 basis points to 3.75%. This will encourage banks to lend to the productive sectors of the economy.With regard to other measures, Das said RBI will begin with giving an additional Rs 50,000 crore through targeted long-term repo operation (TLTRO) to be undertaken in tranches.Besides, he announced a re-financing window of Rs 50,000 crore for financial institutions like Nabard, National Housing Bank and Sidbi.He further said surplus liquidity in the banking system has increased substantially as result of central bank’s actions.Stating that the RBI is monitoring the situation developing out of COVID-19 outbreak, he noted that the contraction in exports in March at 34.6% was much more severe than global financial crisis of 2008-09RBI sees inflation fallingDas said inflation is on a declining trajectory and could fall below the central bank’s 4% target by the second half of this fiscal amid challenges posed by COVID-19 pandemic.He said the consumer price index based retail inflation has fallen by 170 bps from its January 2020 peak.“In the period ahead, inflation could even recede further, barring of course any supply side disruptions and may even settle well below the target of 4% by the second half of 2020-21,” he said.Das added that such an outlook would make policy space available to address the intensification of risks to growth and financial stability brought about by COVID-19. The retail inflation for March fell to a four-month low of 5.91% on cheaper food articles.Banks exempted from dividend paymentsProviding relaxation to lenders, the RBI on Friday said that banks shall be exempted from making dividend payment in the light of financial difficulties posed by COVID-19 pandemic. Das said that the 90-day norm will not apply on moratorium granted on existing loans by banks.To maintain financial health, he said, banks have been exempt to make any further dividend payout in view of financial difficulties arising from COVID-19.(With PTI inputs)