RBI introduces Rs 15,000cr liquidity

RBI introduces Rs 15,000cr liquidity window for contact intensive sectors ; loans of up to Rs 50 crore for MSMEs can be reconstructed

Two minute reads :

The Reserve Bank of India ( RBI ) has opened a separate liquidity window of Rs. 15,000 crore till March 31, 2022.

The facility will have tenors of up to three years at repo rate (4 percent).

It has been done to mitigate the adverse impact of Covid-19’s second wave on Certain contact intensive sector.

  • 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 repair services, rent-a-car service providers, event/conference organisers, spa clinics, and beauty parlours/saloons.

Key highlights :

  • The RBI has also decided to extend a special liquidity facility of Rs 16,000 crore to SIDBI for on-lending/refinancing through novel models and structures.
  • This facility will be available at the prevailing policy repo rate for a period of up to one year, which may be further extended depending on its usage.
  • 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 RBI under reverse repo window at a rate that is 25 basis points lower than the repo rate.
  • Rise in Covid-19 infections and fatalities has impaired the nascent recovery that was underway but has not snuffed it out.

Important takeaways of RBI :-

  • Founded : 1 April, 1935
  • Headquarters : Mumbai
  • Governor : Shaktikanta Das
Axis Bank CEO 2021
RBI introduces Rs 15,000cr liquidity

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