New Delhi: In order to curb the impact of Kovid-19 on the economy by the Reserve Bank of India (RBI), they also made several important announcements to provide relief to the general public and the business. Reserve Bank Governor Shaktikanta Das said that the government and the central bank were thinking of every category including the common man. Taking forward his point, he said that the Reserve Bank of India is constantly monitoring the deteriorating situation caused by Corona, and will continue to take necessary steps to deal with it. He also made several important announcements to provide relief to the general public and the business.
Important Announcements: He said that the RBI is monitoring the situation in Corona. There was a good recovery in the economy after the first wave of Corona. Considering the spread of the second wave of Kovid-19, extensive and quick actions are required. There has been a faster recovery in India than in other countries of the world. The Meteorological Department has predicted a normal monsoon this year. A good monsoon is expected to increase demand in rural areas.
Consumption has increased during January to March. Power consumption has also increased. Freight of Indian Railways has been increased. PMI peaked at 55.5 in April. CPI has also increased. It was 5.5 percent in March. India’s exports increased significantly in March. According to the figures of the Government of India, it increased rapidly in April. There has been an increase in the prices of pulses, pulses, oilseeds and other essential commodities. This is due to the breakdown of the supply chain due to the corona.
Shaktikanta Das during his address thanked the doctors, nurses and other healthcare workers and police personnel for helping in fighting the epidemic. He said that RBI will deploy all its resources and equipment especially for citizens, business entities and institutions affected by the second wave.
RBI has opened a second window of loan restructuring for individual, small borrowers. Those borrowers up to Rs 25 crore, who had not availed loan restructuring facility earlier, can avail loan restructuring this time.
RBI announced a special liquidity facility of Rs 50,000 crore for health facilities related to Kovid-19 by March 2022. Through this, banks will provide vaccine manufactures, vaccine transport at repo rate, loans to exporters in easy installments. Apart from this, hospitals, health service providers will also get the benefit.
He also said that the second phase of the purchase of government securities worth Rs 35000 crore will be started on May 20.
Overdraft facility will be provided for the states. States will get concession in overdraft. The period of overdraft facility has been increased to 50 days. Earlier, its duration was 36 days.
The RBI governor said that Kovid loan books will be created for the priority sector. Banks can park the same amount with their Kovid book with the Reserve Bank. In return, banks will get 40 basis points more interest than the repo rate.
The central bank has announced long-term repo operations (TLTRO) for small finance banks (SFBs) up to Rs 10,000 crore. It will be used for loans up to Rs 10 lakh per borrower.
The governor also said that in view of the current situation, some changes have been made in the KYC rule. KYC has been approved through video. RBI has allowed the use of Limited KYC till December 1, 2021.