Reserve Bank of India Governor Shaktikanta Das is making an unscheduled speech as the second wave of coronavirus continues to devastate the country. India has emerged as the coronavirus hotspot, with surging cases overwhelming the healthcare system. India has already crossed the 2-crore mark in total Covid infections caseload, which is the second highest globally — just behind the United States and ahead of Brazil.
Prime Minister Narendra Modi has so far resisted pressure to impose a lockdown to stem the spread of the dreaded virus. Earlier this week, president of the Confederation of Indian Industry and chief executive of Kotak Mahindra Bank Uday Kotak had called upon the government to consider curtailing economic activity to cut the transmission chain of coronavirus.
Here are some key highlights:
Have faith in India’s ability to come out of Covid-19 crisis, Shaktikanta Das said and added that RBI continues to monitor the Covid-19 situation.
India is fighting a ferocious rise in Coronavirus cases and we have to marshall all our resources with renewed vigour, the Governor added.
We have decided to provide a term liquidity facility of Rs. 50,000 crore to ease access of new funds to Emergency Medical Services
The banks can lend to hospitals, oxygen suppliers and vaccine importers by March 31, 2022
Businesses are learning to work amid localized and targeted containment measures.
Disruption in manufacturing is minimal and we do not expect any major deviation from our growth projection in April 2021
We have decided a Resolutìon Framework 2.0 to help stressed small borrowers (both individuals and MSMEs) who are most vulnerable in the present situation
KYC compliance is being rationalised; limited KYC can now be used till December 1, 2021.
Good monsoon expectation will keep rural demand strong