RBI Governor makes important announcements amidst covid epidemic

Governor of the (RBI) Reserve Bank of India Shaktikanta Das said that people are facing many kinds of problems in the midst of the COVID-19 epidemic. 

The RBI has made several announcements to keep the economy on track during the pandemic period.

The RBI governor said that the corona infection may be more serious than last year, but this time a different strategy was adopted to fight it so that the economy can be saved as well.

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Shaktikanta Das gave many figures compared to last year and said that the state of the economy is getting better than before. 

He also said that the expectation of normal monsoon is expected to keep the prices of food items under control.

Shaktikanta Das said that exports have increased and foreign exchange reserves have also increased, which has increased India's confidence. 

The RBI also made some announcements about the economy to help fight the second wave of Corona.

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Important announcements of RBI

• Banks will provide additional loan for facilities in vaccines and hospitals. This loan will be charged under the covid loan book. This facility will be available till next year.
• The RBI has announced a fund of Rs 50,000 crore for healthcare.
• RBI will buy government securities worth 35 thousand crores for the second time in two weeks.

• RBI has relaxed the overdraft facility for the states and it will continue till 30 September. This will make it easier for states to take money.
• RBI has arranged video-based KYC in many categories so that people do not face any difficulty in banking facilities.
• The RBI has arranged a separate loan for small traders. It is for those businessmen who have not taken it earlier.

Here are some of the relief measures announced:

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• > Lending by SFBs to MFIs for on-lending to be classified as Priority Sector Lending

• "In view of the fresh challenges brought on by the pandemic and to address the emergent liquidity position of smaller MFIs,SFBs are now being permitted to reckon fresh lending to smaller MFIs(with asset size of up to Rs 500 crore) for on-lending to individual borrowers as priority sector lending. This facility will be available up to March 31, 2022,"the RBI Governor said.

• > Resolution framework 2.0 for COVID-related stressed assets of individuals, small businesses and MSMEs

• Borrowers i.e. individuals and small businesses and MSMEs having aggregate exposure of upto Rs 25 crore and who have not availed restructuring under any of the earlier restructuring frameworks and who were classified as "standard"as on March 31, 2021 shall be eligible to be considered under Resolution Framework 2.0.

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