oppn parties RBI Acts With Alacrity

News Snippets

  • Karnataka HC has ruled that a harassment complaint lodged by a wife after receiving a divorce notice from the husband loses its weight in the eye of the law and quashed the FIR filed by a women against her husband and in-laws
  • 35 people killed in renewed violence in Manipur, 30 of them militants
  • Manipur boils on the eve of Home minister Amit Shah's visit as militants strike, vandalize MLAs home and loot armouries
  • Kerala chief minister P Vijayan says Centre's decision to cut the borrowing limit of the state is 'sadistic' and shows its negative mentality towards the state's development
  • Rahul Gandhi recieves passport, set to travel to the US
  • Centre said that the march-to-Parliament by wrestlers was a 'deliberate provocation'
  • Prime Minister Modi inaugurates the new Parliament building, calls it 'cradle of empowerment'
  • Mamata Banerjee will most likely attend the opposition meet called by Nitish Kumar in Patna
  • With container prices, which were on fire, crashing by 40% YoY, importers and exporters in India heaved a sigh of relief as the burden of high freight costs will reduce
  • In an aim to push lenders to manage risks better after the US financial crisis, the RBI has reviewed bond value norms
  • 14 countries under the Indo-Pacific Economic Framework (IPEF), including India, entered into an agreement to boost supply chains and counter China
  • Malaysia Cup badminton- H S Prannoy wins the title beating Weng Hong Yang of China 21-19,13-21, 21-18
  • Yashasvi Jaiswal replaces Ruturaj gaikwad as stand-by opener for the WTC final
  • IPL final washed out due to rain, rescheduled for today, the reserve day
  • In a shameful incident, Delhi Police manhandled international wrestlers when they sought to march peacefully to the new Parliament building to highlight their greivances, detained some top wrestlers
Fifth IPL title for Chennai as Ravindra Jadeja hits 10 off last two balls to spoil the party for Gujarat Titans
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.