RBI opens liquidity tap for Covid-hit industries
A separate liquidity window of ₹15,000 cr has been created for certain sectors
MUMBAI: In a bid to support revival of sectors hit most by the Covid-19 pandemic, Reserve Bank of India (RBI) on Friday decided to open a separate liquidity window of ₹15,000 crore for certain contact-intensive sectors like hotels and restaurants, tourism and aviation ancillary services.
This is in addition to on-tap liquidity window of ₹50,000 crore with tenors of up to three years at the repo rate till March 31, 2022 to boost provision of immediate liquidity for ramping up Covid-related healthcare infrastructure and services in the country. This was announced on May 5.
“In order to mitigate the adverse impact of the second wave of the pandemic on certain contact-intensive sectors, a separate liquidity window of ₹15,000 crore is being opened till March 31, 2022, with tenors of up to three years at the repo rate,” RBI Governor Shaktikanta Das said.
Under the scheme, banks can provide fresh lending support to hotels and restaurants; tourism
—travel agents, tour operators and adventure/heritage facilities; aviation ancillary services – ground handling and supply chain; and other services that include private bus operators, car services, rent-a-car service providers, event organisers, spa clinics, and beauty parlours/ saloons, he said.
“By way of an incentive, banks will be permitted to park their surplus liquidity up to the size of the loan book created under this scheme with the Reserve Bank under the reverse repo window at a rate which is 25 bps lower than the repo rate or, termed in a different way, 40 bps higher than the reverse repo rate,” he said.
In order to help, the Finance Ministry earlier this week expanded the scope of the ₹3 lakh crore Emergency Credit Line Guarantee Scheme which will offer concessional loans to hospitals for setting up on-site oxygen generation plants.
Besides, the validity of the scheme has been extended by three months to September 30 or till guarantees for an amount of ₹3 lakh crore are issued.