RBI Announces ₹50,000 Cr Liquidity For COVID-19 Healthcare Infrastructure
Mumbai: During his address on Wednesday, May 5, 2021, Reserve Bank of India Shaktikanta Das called on the country’s frontline employees, such as doctors, nurses, other healthcare workers, and police personnel for their selfless efforts in fighting the pandemic and saving lives.
He said RBI will continue to monitor the emerging COVID19 situation and deploy all resources and equipment in its command, especially to citizens, business entities and institutions affected by the second wave.
Governor Das said that the central bank has decided that the second purchase of Rs 35,000 crore of government securities (G-SEC) under G-SAP 1.0 has been advanced by May 20, 2021.
“Will ramp up COVID-related healthcare infrastructure by on-tap term liquidity facility of Rs 50,000 crore with the tenor of up to 3 years at repo rate is being opened till March 31, 2022, for vaccine manufacturers as well,” the RBI Governor said.
The banks will open a Kovid loan bank which will be classified as a priority sector loan. Das said Small Finance Banks (SFBs) are now permitted to regard fresh on-lending to microfinance institutions (MFIs) with asset size up to Rs 500 crore, as priority sector lending; this facility available up to March 31, 2022.
“The devastating speed with which the virus affects has to be matched by swift and wide-ranging actions that are sequenced, calibrated and well-timed so as to reach out to various sections including the most vulnerable,” Governor Das further added.
Highlighting other economic indicators, Das said that in April 2021, rail freight increased by more than 76% year-on-year, which was lower on a year-on-year basis. The toll collection in April shows that there has been a decline in mobility but in contrast to the sudden stagnation during April 2020.
Automobiles registration in April 2021 shown moderation compared to March. The tractor segment continues robust pace which points towards a robust rural economy despite the slowdown in urban growth.
Follow us on Twitter, Instagram, and like us on Facebook for the latest updates and interesting stories.
