Business

RBI Announces Rs 15,000 Crore Liquidit For Contact-Intensive Sectors

RBI Announces Rs 15,000 Crore Liquidit For Contact-Intensive Sectors

The Reserve Bank of India (RBI) in its second bi-monthly Monetary Policy Committee (MPC) meeting on Friday, June 4, opened a separate liquidity window of Rs 15,000 crore till March 31 next year to curtail the adverse impact of the second wave of the COVID-19 pandemic on certain contact-intensive sectors. RBI Governor Shaktikanta Das, while addressing the statement, said that the facility will have tenors of up to three years at a repo rate of four per cent.

As part of the scheme, banks can now provide fresh lending support to contact-intensive sectors such as hotels and restaurants, travel agents, tour operators, adventure or heritage facilities, aviation ancillary services ground handling and supply chain, and other services that include private bus operators, car repair services, rent-a-car service providers, event/conference organisers, spa clinics, and beauty parlours or saloons.

The banks will be allowed to park their surplus liquidity up to the size of the loan book created under the scheme with the RRBI, under reverse repo window at a rate that is 25 basis points lower than repo rate. Additionally, to support the micro, small and medium enterprises (MSMEs), particularly smaller MSMEs and other businesses including those in credit deficient and aspirational districts, the Reserve Bnak also decided to extend a special liquidity facility of Rs 16,000 crore to SIDBI for on-lending or refinancing through novel models and structures.