What RBI announced for hotels, tourism and aviation sector in monetary policy today
1 min read . Updated: 04 Jun 2021, 11:09 AM IST
Premium- Banks can provide support to hotels and restaurants, tourism, aviation support services and other services under this programme.
In order to mitigate the adverse impact of the second wave of the pandemic on certain contact-intensive sectors, a separate liquidity window of ₹15,000 crores is being opened till March 31, 2022 with tenors of up to three years at the repo rate, the RBI governor said on Friday while announcing the monetary policy.
Announcing the on-tap Liquidity Window for Contact-intensive Sectors, he said that banks can provide support to hotels and restaurants, tourism, aviation support services and other services under this programme.
Under the scheme, banks can provide fresh lending support to hotels and restaurants; tourism – travel agents, tour operators and adventure/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 organizers, spa clinics, and beauty parlours/salons.
''By way of an incentive, banks will be permitted to park their surplus liquidity up to the size of the loan book created under this scheme with the Reserve Bank under the reverse repo window at a rate which is 25 bps lower than the repo rate or, termed in a different way, 40 bps higher than the reverse repo rate,'' Das said.
Hotel stocks like Indian Hotels, Lemon Tree Hotels surged after the announcement of the liquidity measures by RBI.
The Reserve Bank of India (RBI) has left the benchmark interest rate unchanged at 4%, maintaining an accommodative stance as the economy faces the heat of the second Covid wave. This is the sixth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo.
