RBI announces Rs. 50,000 cr priority lending to fight the pandemic

Reserve Bank of India Governor Shaktikanta Das delivered an unscheduled speech on 5th May and urged the people of the country to have faith in India’s ability to come out of the Covid crisis.

Below are the announcements made by Governor Das –

• RBI continues to monitor the country’s situation from resurgence of COVID-19 cases, and will deploy all resources and instruments at its command especially for the citizens, business entities, and institutions beleaguered by the second wave.
• The situation has reversed from being on foothills of strong economic recovery to facing a fresh crisis, said the Governor.
• Rupee opens 5 paise higher at 73.80 against US dollar.
• Normal monsoon forecast should help contain food price inflation.
• RBI to do second purchase of govt securities aggregating Rs 35,000 cr in two weeks.
• Rs 50,000 cr priority lending by banks for hospitals, oxygen suppliers, vaccine importers, COVID drugs by 31st March, 2022.
• Provides second window to individual, small borrowers having up to Rs 25 cr loans for restructuring loans if not availed earlier.
• RBI announces rationalisation of KYC compliance norms, provides for video-based KYC for certain categories.
• RBI relaxes rules for availing overdraft facility for state govts up to 30th September.