Reserve Bank of India Governor Shaktikanta Das on May 5 announced a Rs 50,000-crore on-tap liquidity facility to ramp up health infrastructure and additional loan restructuring schemes amid a series of measures to help the financial services industry tide over the second coronavirus wave that threatens economic recovery.
Restructuring below the proposed framework could also be invoked as much as up September 30 and shall need to be carried out inside 90 days thereafter, Mr Das stated.
“Resurgence of Covid-19 pandemic in India in current weeks and the related containment measures adopted at native and regional ranges have created new uncertainties and impacted the nascent financial revival that was taking form. On this surroundings, essentially the most susceptible class of debtors are particular person debtors, small companies and MSMSEs,” RBI Governor Shaktikanta Das stated in a speech.
With respect to individual borrowers and small businesses who availed restructuring of their loans under the Resolution Framework 1.0, where the resolution plan permitted moratorium of less than two years, lending institutions are being permitted to use this window to modify such plans to the extent of increasing the period of moratorium or extending the tenure up to a total of two years, Mr Das added.
In a separate development, the RBI Governor said the central bank will provide a term-liquidity facility of ₹ 50,000 crore to ease access of funds for emergency medical services.
CommentsShaktikanta Das expressed faith in India’s ability to come out of Covid-19 crisis and added that RBI continues to monitor the situation closely. India has already crossed the 2-crore mark in total Covid infections caseload, which is the second highest globally — just behind the United States and ahead of Brazil. India is fighting a ferocious rise in coronavirus cases and we have to marshall all our resources with renewed vigour, the Governor emphasized.
