RBI announces additional measures to tackle second wave of coronavirus [Details Inside]
Rajan Nath
June 4th 2021 02:30 PM --
Updated:
June 4th 2021 02:47 PM
RBI Aditional Measures and GDP growth: Amid the second wave of coronavirus, Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday announced that the Policy Repo Rate will remain unchanged at 4 percent and that the Marginal Standing Facility and Bank Rate will remain at 4.25 percent.
Economy projected to grow at 9.5 percent in 2021-22
RBI Additional Measures
- On-Tap Liquidity Window for Contact-Intensive sectors: A separate liquidity window of Rs. 15,000 Crore is being opened till March 31, 2022, with tenures up to three years, at the repo rate.
- Special Liquidity Facility of Rs. 16,000 Crore to SIDBI, for on-lending / refinancing through novel models and structures at Repo Rate, for a period of up to one year. This is to further support the credit requirements of MSMEs, including those in credit-deficient and aspirational districts.
- Expansion of coverage of borrowers under Stress Resolution Framework 2.0, by enhancing maximum aggregate exposure threshold from Rs. 25 Crore to Rs. 50 Crore for MSMEs, non-MSME small businesses, and loans to individuals for business purposes.
- Permission given to Authorized Dealer banks to place margins on behalf of FPI clients for transactions in Govt. securities within banks' credit risk management framework. This will ease operational constraints faced by Foreign Portfolio Investments and promote ease of doing business.
- Regional Rural Banks can now issue Certificates of Deposit (CDs)
- National Automated Clearing House (NACH) to be available on all days of the week (currently available only on bank working days), effective from August 1, 2021. NACH is a popular and prominent mode of direct benefit transfer to a large number of beneficiaries, this measure will enhance customer convenience.