Segment to be incentivized are automobiles, residential housing and loans to micro, small and medium enterprises (MSMEs)
The Reserve Bank is actively engaged in revitalizing the flow of bank credit to productive sectors having multiplier effects to support impulses of growth.As a part of this, it has now been decided that scheduled commercial banks will be allowed to deduct the equivalent of incremental credit disbursed by them as retail loans for automobiles, residential housing and loans to micro, small and medium enterprises (MSMEs), over and above the outstanding level of credit to these segments as at the end of the fortnight ended 31 January 2020 from their net demand and time liabilities (NDTL) for maintenance of cash reserve ratio (CRR).
This exemption will be available for incremental credit extended up to the fortnight ending 31 July 2020.
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