oppn parties RBI Acts With Alacrity

News Snippets

  • India's sovereign green bonds were oversubscribed four times as the RBI received 266 bids worth Rs 32892cr agaisnt the target of Rs 8000cr
  • Google tweaks its Android and India app store policy to allow manufacturers and users to choose certain things instead of compulsorily using Google apps after the CCI order and fine for unfairly dominating the market
  • Former US secretary of state calls former Indian external affairs minister Sushma Swaraj a "goofback" and a "hinterland political hack". MEA S Jaishankar slams him
  • Jamia screening of BBC documentary on Gujarat riots cancelled after the university was turned into a fortress and later 13 students were detained by the police
  • Supreme Court grants conditional interim bail for eight weeks to Lakhimpur Kheri accused Ashish Mishra. The bail can be further extended based on his conduct. He was asked to stay outside Delhi-NCR and UP and surrender his passport
  • After the JNU administration tried to thwart the students from screening the BBC documentary on the Gujarat riots and PM Modi, now students of Presidency and Jadavpur universities in Kolkata have decided to screen it 5 times next week
  • While a US research frim Hindenburg says its analysis found the Adani group overleveraged and claimed that its bubble will burst very soon and that sent the price of group companies crashing (Adani companies lost a combined Rs 55000cr), Adani group said the report was 'baseless' and 'malicious'
  • This time Enforcement Directorate arrests TMC spokesperson Saket Gokhale under PMLA for money laundering
  • Padma awards announced on Republic Day: Mulayam Singh Yadav, architect Balkrishna Doshi and ORS pioneer Dilip Mahalanobis get Padma Bibhushan posthumously, Padma Bhushan ius awarded to Kumar Mangalam Birla and 8 others and 91 get Padma Shri
  • Stocks fall big time on Wednesday on F&O expiry, finalncial and banks take big hit: Sensex tumbles 773 points to 60205 and Nifty 226 points to 17892 even as the market volatility meter shoots up by 8.51%
  • World Cup hockey: Germany stun England 4-3 to reach semifinals; Netherlands beat Korea 5-1 to enter last four
  • Australian Open: Sania Mirza and Rohan Bopanna reach the finals
  • Suryakumar Yadav is named ICC Cricketer of the Year 2022 and Renuka Singh gets the ICC Emerging Cricketer of the Year 2022 award
  • BCCI gets a whopping Rs 4670cr in the auctions for the 5 teams in WIPL or as it will be known now, WPL. Adani Sportline gets Ahmedabad for Rs 1289cr while Mumbai Indians get Mumbai for 913cr
  • Calcutta HC overturns the hookah bar ban in Kolkata by saying that it is not an illegal trade
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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.