Keeping an eye on all sections of the Indian economy amid second wave of Covid-19, the Reserve Bank of India (RBI) Governor Shaktikanta Das has expressed full confidence in Indian resilience against the deadly pandemic. To strengthen all stake holders in the India’s fight against Corona, the RBI Governor announced various measures to equip public in general, Indian banks, industries and other stake holders.
Here are the key takeaways from the RBI Governor Shaktikanta Das speech:
1] To ease access to Emergency Health Service, the RBI announced and boost provision of immediate liquidity for ramping up COVID related healthcare infrastructure and services in the country, an on-tap liquidity window of ₹50,000 crore with tenors of up to three years at the repo rate is being opened till March 31, 2022. Under the scheme, banks can provide fresh lending support to a wide range of entities including vaccine manufactures; importers/suppliers of vaccines and priority medical devices; hospitals/dispensaries; pathology labs; manufactures and suppliers of oxygen and ventilators; importers of vaccines and COVID related drugs; logistics firms and also patients for treatment.
2] Normal monsoon forecast to help contain food price inflation as the production is expected to meet the demand in coming times.
3] ₹50,000 crore priority lending by banks for hospitals, oxygen suppliers, vaccine importers, Covid drugs by March 31, 2022.
4] Opening of the 2nd window to individual, small borrowers having up to ₹25 crore loans for restructuring loans if not availed earlier.
5] Rationalisation of KYC compliance norms enabling video-based KYC for certain categories.
6] Ease in rules for availing overdraft facility for state governments up to September 30, 2021.
7] ₹10,000 crore allocation for small finance banks under SLTRO.