(Video) Rajya Sabha TV (RSTV) The Big Picture: RBI announces liquidity support measures to fight Covid

Topic: RBI announces liquidity support measures to fight Covid

Guest:

Ashok Nag, (Former Advisor, RBI)
Subhomoy Bhattacharjee, (Consulting Editor, The Business Standard)

Topic Description:

The Reserve Bank of India on Wednesday announced a host of measures to boost fund flow to the healthcare sector amid the raging second wave of the Covid pandemic.RBI Governor Shakikanta Das announced, that to ramp up the Covid related healthcare infrastructure in the country, an on-tap special liquidity facility of Rs 50,000 crore will be made available to the banks at the repo rate which is 4% - with up to 3-year tenor till March 31, 2022.He also announced special long-term repo operations for small finance banks to provide further support to micro, small and other unorganized sector entities. The small finance banks will be permitted to lend to small microfinance institutions having an asset size of Rs 500 crore.The central bank will conduct a special 3-year long-term repo operation of Rs 10,000 crore at repo rate for SFBs. There will be a limit of Rs 10 lakh per borrower and the facility will be available till October 31, 2021.