New Delhi: Reserve Bank of India (RBI) on Wednesday announced a slew of measures including loan restructuring for individual and small businesses hit hard by fresh COVID-19 wave.
Governor Shaktikanta Das on Wednesday said that the central bank will continue to monitor situation from resurgence of COVID-19 cases and will deploy all resources and instruments at its command especially for the citizens, business entities, and institutions beleaguered by the second wave.
RBI Governor, addressing a videoconference said that the situation has reversed from being on foothills of strong economic recovery to facing a fresh crisis.
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, he added.
Here are the key highlights of RBI announcement
- RBI relaxes rules for availing overdraft facility for state governments up to September 30.
- RBI announces rationalisation of KYC compliance norms, provides for video-based KYC for certain categories.
- RBI provides 2nd window to individual, small borrowers having up to Rs 25 crore loans for restructuring loans if not availed earlier.
- RBI Governor announces Rs 50,000 cr priority lending by banks for hospitals, oxygen suppliers, vaccine importers, COVID drugs by March 31, 2022.
- 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 20th May, announced RBI Governor Shaktikanta Das.
- Special long term repo operations for small finance banks to provide further support to micro, small & 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 October 2021.
- In view of fresh challenges, Small Finance Banks are now permitted to regard fresh on-lending to MFIs with asset size up to Rs 500 crore, as priority sector lending, facility available up to 31 March, 2022.
