'Have faith in India's ability to come out of Covid crisis,' says RBI Guv Das
Normal monsoon forecast should help contain food price inflation, says Governor Shaktikanta Das.
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Business News/ Industry / Banking/ 'Have faith in India's ability to come out of Covid crisis,' says RBI Guv Das
The Reserve Bank of India asked banks on Wednesday to let certain borrowers have more time to repay loans, among other support measures, amid a major second wave of COVID-19 infections in the country that has led to strict lockdowns in several states.
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RBI Governor Shaktikanta Das speech Highlights:
- RBI permits limited KYC to be used till December 1, 2021.
- Small finance banks allowed to on-lend to smaller microfinance institutions of asset size up to ₹500 crore: Das.
- The moratorium will be available to individuals and small and medium enterprises that have not restructured their loans in 2020 and were classified as standard accounts till March 2021, said RBI Governor Shaktikanta Das.
- 'Our faith should be like an ever burning lamp which not only gives us light, but also illuminates the surroundings,' Guv Das quotes Gandhi.
- The immediate objective is to save lives, says Guv Das.
- RBI announces loan resolution framework 2.0 for individuals, small businesses and MSMEs.
- 'Small borrowers up to ₹25 cr exposure get a new restructuring window. For past restructured loans, moratorium can be extended,' says Das.
- Banks will also be eligible to park surplus liquidity with RBI to the extent of Covid loan book, says governor Shaktikanta Das.
- On-tap liquidity of ₹50,000 crore at repo rate is being opened till March 31, 2022, says Das.
- Under the scheme banks can support entities including vaccine manufacturers, medical facilities, hospitals and also patients, says Das. Such lending will get priority sector classification till repayment or maturity.
- Forex reserves stood at $588 billion as of March 30, 2021, and this gives us the confidence to deal with global spillovers, says Das.
- Localized and targeted containment measures are enabling businesses and households to adapt; hence, effect on aggregate demand is expected to be moderate in comparison to last year, says Das.
- Decided that second purchase of G-SEC for ₹35,000 cr under G-SAP 1.0 will be conducted on May 20, says Guv Das.
- Normal monsoon forecast should help contain food price inflation, says RBI Governor.
- RBI will continue to monitor the emerging COVID-19 situation and will deploy all resources and instruments at its command especially for the citizens, business entities, and institutions beleaguered by the 2nd wave, says RBI Guv.
- The outlook for the global economy is highly uncertain and subject to downside risks, says Das.
- The situation has altered drastically over the past month, says Governor Das.
- Have faith in India's ability to come out of the Covid-19 crisis, says Shaktikanta Das.
- RBI will continue to monitor the situation: Guv Das
- 'My faith is brightest in the midst of impenetrable darkness,' Guv Das quotes Mahatma Gandhi.
- Will deploy all resources at its command at the service of the nation: Shaktikanta Das.
- A fresh crisis is still unfolding: Shaktikanta Das.
- The Indian economy was advantageously poised: Shaktikanta Das.
- Bankers have asked the RBI for a moratorium of three months, particularly for retail and small borrowers, who have been the worst hit in the second wave of the pandemic, according to reports.
- Last year, the central bank declared a moratorium for a total of six months for all borrowers.
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