oppn parties RBI Acts With Alacrity

News Snippets

  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
  • India has moved to the 40th spot in the innovation index, up 6 spots from last year
  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
  • At $23.9bn, India's current account deficit widened to 2.8% in Q1, the worst in four years
  • Stocks continue to flounder on Thursday: Sensex sheds 188 points to 56409 and Nifty 40 points to 16818
  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
  • Jasprit Bumrah most likely to miss T20 World Cup due to recurrence of back injury
  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
oppn parties
RBI Acts With Alacrity

By Ashwini Agarwal
First publised on 2021-05-05 15:16:11

It is good that the RBI has taken proactive and early measures to alleviate the hardships that are certain to be caused to individuals and businesses due to the local lockdowns in many states because of the second wave of Covid-19. The RBI has earmarked Rs 50000 crore which the banks will lend to the utmost priority medical sector, more especially to vaccine manufacturers, diagnostic labs and others at lower interest rates. It has also allowed restructuring of loans of individuals and small business, subject to some conditions, to allow them to escape being branded as NPAs and reduce stress. The apex bank also took a slew of measures to infuse liquidity in the system.

The on-tap liquidity window of Rs 50000 crore would be available to set up Covid-related healthcare infrastructure. Under this priority lending scheme, "banks can provide fresh lending support to a wide range of entities, including vaccine manufacturers, importers/suppliers of vaccines and priority medical devices, hospitals/dispensaries, pathology labs, manufacturers and suppliers of oxygen and ventilators, importers of vaccines and Covid-related drugs, logisitic firms and also patients for treatment" said RBI governor Shaktikanta Das. Since healthcare is going to be the foremost priority sector for a long time, this is an excellent move.

Recognizing that individual borrowers and small firms will be stressed once more, the RBI has allowed loan restructuring (and not a moratorium) for them. Individuals and MSMEs borrowers can avail one-time restructuring till September 30, 2021. This covers those having exposure up to Rs 25 crore, and those that were standard as of March 31 this year.

The RBI also announced that it will relax the overdraft facility norms for state governments grappling with the Covid crisis. It also indicated that it will buy G-Sec worth Rs 35000 crore on May 20.

These measures will go a long way in quantitative easing and give an impetus to the fight against Covid-19 by empowering a host of healthcare providers.