RBI relief to small borrowers, loans to vaccine makers
The Reserve Bank of India on Wednesday took a series of liquidity-boosting and loan-relief measures to aid broad swathes of the economy walloped by the second wave of the Covid-19 pandemic.
Governor Shaktikanta Das said that the central bank will make available an on-tap liquidity window of ₹50,000 crore, with a tenor of up to three years, under which banks can provide fresh lending support to a wide range of entities, including vaccine makers, importers of vaccines, Covid-related drugs, hospitals, labs, manufacturers and suppliers of oxygen and ventilators, logistics firms and also to patients for treatment. This facility, which will be offered at the repo rate, will be available till March 31, 2022.
The steps are likely to help the stressed health care industry expand facilities to treat more Covid-19 patients. With thousands of sick people seeking treatment, hospitals are overwhelmed and are running out of medical-grade oxygen. Vaccines and key medicines are in short supply, as are lifesaving medical equipment.
The RBI also allowed the restructuring of loans to retail
MUMBAI:
The devastating speed with which the virus affects different regions has to be matched by swift-footed and wide-ranging actions
SHAKTIKANTA DAS,
RBI governor
borrowers and small businesses up to ₹25 crore without being classified as non-performing assets. Restructuring under the proposed framework may be invoked up to September 30.
Under the special liquidity window, RBI said all loans given will be classified as priority sector loans till repayment or maturity. Bank can disburse these loans to borrowers directly or through intermediaries regulated by the RBI.
Analysts said that direct support to the identified sectors will help generate total output demand of roughly ₹80,000 crore.