Global economies exhibiting incipient signs of recovery although outlook still remains uncertain and subject to downside risk, Reserve Bank of India Governor Shaktikanta Das said during an unscheduled speech today. India had flattened curve in March 2021 but situation has altered drastically over the past month, said Governor Das. RBI will continue to monitor the emerging COVID-19 situation and will deploy all resources and instruments at its command especially for the citizens, business entities, and institutions beleaguered by the 2nd wave, the Governor said.
Among the host of measures taken by the central bank to ameliorate the impact of the second wave of the pandemic on the finances, the governor announced on-tap liquidity of ₹50,000 crore for a tenure of three years for banks to be able to extend Covid loans for all healthcare entities. Banks will also be eligible to park surplus liquidity with RBI to the extent of Covid loan book, says governor Shaktikanta Das.
Das also announced special long-term repo operations for small finance banks to provide further support to micro, small and other unorganized sector entities. RBI provides 2nd window to individual, small borrowers having up to Rs 25 crore loans for restructuring loans if not availed earlier, said the RBI governor. RBI has also decided that second purchase of G-SEC for Rs 35,000 cr under G-SAP 1.0 will be conducted on May 20, considering the encouraging response from the first round of purchase.
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