The Reserve Bank on Wednesday made several important announcements regarding the liquidity support in the system of India. The most important decision by RBI Governor Shaktikanta Das has made a provision of Rs 50,000 crore for the health care infrastructure and services related to Covid. On behalf of banks, this liquidity will be used for priority lending for hospitals, oxygen suppliers, vaccine importer, corona drugs ect. The Reserve Bank Governor said that the second wave of Corona in India had a strong impact on the economy. The Reserve Bank is monitoring the situation. All resources are being used. Big steps are needed against the second wave. The country’s economy was on track since the first wave, but the second wave of Covid has worsened the conditions. At present, there are signs of recovery in the global economy. The second important decision has been taken by RBI for the purchase of Government Securities (G-Sec).The RBI governor said that the second phase of the purchase of 35000 crore worth of securities will be started on May 20.
The RBI governor said that the second phase of the purchase of 35000 crore worth of securities will be started on May 20. This facility will be available till March 2022. This is the term liquidity facility for the health infra companies from banks in the era of Covid.
In another important decision, RBI Governor Das said that the second phase of the purchase of 35000 crore Government Securities (G-Sec) will be started on May 20. In fact, the government issues government bonds or government securities to raise debt for expenses. This means that the government will continue public spending during the Corona epidemic.
RBI Governor said that it has announced a special long term operation for Small Finance Banks (SFBs) to provide support to micro, small and other unorganized sectors. RBI will bring a three-year, 10,000-crore Targeted Long Term Repo Operation (TLTRO) for SFBs. That is, under this facility, the bank will be able to do lending at the repo rate. This facility will be available till 31 October 2021. There is a limit of 10 lakh rupees per borrower. In another important decision for the small sector, the RBI governor announced that the small finance banks will now be able to make up to 500 crore micro finance institutions landing the priority sector. This facility will be available till 31 March 2022.
In the current situation, some changes have been made in the KYC rules. KYC has been approved through video. He also said that for the states, relief has also been given in the overdraft facility. Apart from this, provision will be made for loans and incentives in priority sectors soon. Apart from this, banks will also make covid Bank loans.
The RBI governor said that this year, due to the normal monsoon, there should be relief in the inflation of food and drink. Especially the price of cereals and pulses should come down. There is growth in the import and export of the country in April 2021 as well. At the same time, foreign exchange reserves i.e. foreign exchange reserves give us confidence that there will be no problem in dealing with the current global crisis.
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