RBI announces Rs 50,000 crore liquidity for ramping up COVID-related healthcare infrastructure
Amid the emerging coronavirus situation in India, the Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday said that RBI will continue to monitor the situation and will deploy all resources and instruments at its command especially for the citizens, business entities, and institutions beleaguered by the second wave.
"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," the RBI Governor said.
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He added that the forecast of a normal monsoon by IMD was expected to sustain rural demand and overall output in 2021-22, while also having a soothing impact on inflation pressures.
Rail freight registered a growth of over 76 percent year on year in April, Shaktikanta Das said, adding that "Toll collections in April suggest mobility declined but unlike abrupt halt during April 2020."
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"Automobiles registration in April 2021 shown moderation compared to March. Tractor segment continues a robust pace," RBI Gov said.
Normal monsoon should help contain food price pressures, especially in cereals and pulses, he said. Merchandise imports and exports continue to witness robust growth performance, even in April 2021, he added.
Meanwhile, RBI announces Rs 50,000 crore liquidity for ramping up COVID-related healthcare infrastructure and services till March 2022, RBI Governor Shaktikanta Das said.
He further announced that the special long-term repo operations for small finance banks to provide further support to micro, small, and other unorganized sector entities, 3-year repo operations of Rs. 10,000 crore at repo rate, for fresh lending up to Rs 10 lakh per borrower; facility up to 31 Oct' 21.
Given the positive response from the market, it has been decided that the second purchase of govt securities for an aggregate amount of Rs 35,000 crores under G-SAP 1.0 will be conducted on May 20, Das said.
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