RBI announces Rs 50,000 cr boost for emergency health sector, next G-SAP auction advanced

 RBI announces Rs 50,000 cr boost for emergency health sector, next G-SAP auction advanced

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RBI has allowed on-tap term liquidity facility of Rs 50,000 crore with the tenor of up to 3 years at repo rate is being opened till March 31, 2022, for vaccine manufacturers and the healthcare sector

NEW DELHI

Reserve Bank of India, Governor, Shaktikanta Das during his unscheduled address Wednesday, May 5, 2021, thanked the country’s frontline workers such as doctors, nurses, other healthcare workers, and police personnel for their selfless efforts in fighting the pandemic and saving lives.

RBI will continue to monitor the emerging COVID19 situation and will deploy all resources and instruments at its command especially for the citizens, business entities, and institutions beleaguered by the second wave, he added.

Governor Das said the central bank has decided that the second purchase of government securities (G-SEC) of Rs 35,000 crore under G-SAP 1.0 has been advanced to May 20, 2021.

“Will ramp up COVID-related healthcare infrastructure by on-tap term liquidity facility of Rs 50,000 crore with the tenor of up to 3 years at repo rate is being opened till March 31, 2022, for vaccine manufacturers as well,” the RBI Governor said.

Banks will open a Covid loan bank which shall be classified as priority sector lending. Das said Small Finance Banks (SFBs) are now permitted to regard fresh on-lending to microfinance institutions (MFIs) with asset size up to Rs 500 crore, as priority sector lending; this facility available up to March 31, 2022.

“The devastating speed with which the virus affects has to be matched by swift and wide-ranging actions that are sequenced, calibrated and well-timed so as to reach out to various sections including the most vulnerable,” Governor Das further added.

Agencies

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