The RBI on Wednesday announced various developmental and regulatory policy measures to aid liquidity management and target areas, to mitigate the effects of the epidemic and help in economic revival.
The central bank decided to provide a facility of ₹ 50,000 crore to All India Financial Institutions for grant of new loans in the financial year 2012. This will help the economy to support the continuation of debt and nurture the stillborn growth impulses in the post-COVID-19pandemic.
Accordingly, NABARD was awarded a special liquidity facility (SLF) of ₹ 25,000 crore for one year to support agriculture and allied activities, rural non-agricultural sector and non-banking financial companies-Micro Finance Institutions (NBFC-MFIs). Will go. RBI said
The SLF of ₹ 10,000 crore will be extended to the National Housing Bank for one year to support the housing sector. 15,000 crore will be provided under this facility to SIDBI for funding Micro, Small and Medium Enterprises (MSMEs). Althese three facilities will be available at the prevailing policy repo rate.
While pointing out the importance of Asset Reconstruction Companies (ARC) in the current context to deal with bad debts, the RBI stated that it would undertake a comprehensive review of the functioning of ARCs in financial jurisdictions and recommend appropriate measures to enable such entities Will constitute a committee. To meet the growing requirements of the financial sector.
It stated that when ARCs had grown in number and size, their ability to resolve stressed assets had not yet been fully realized.
Classification of Priority Sector Lending (PSL) for lending by banks to ‘on-lending’ sectors to NBFCs – which contribute significantly to economic growth in terms of exports and employment – six more months, ie 30 By September 2021. Approved. This will provide an impetus to the loan granting NBFC at the bottom of the pyramid.
To enhance the liquidity position of NBFCs, the RBI in August 2019 allowed banks to classify lending to registered NBFCs (other than MFIs) as banks for lending to banks, agriculture and MSMEs and housing. PSL up to 5% of the total PSL. RBI said that as of March 31, 2020. This disbursement was later extended to 31 March 2021., Rs 37,000 crore has been lent by banks to the NBFC.
RBI also decided to increase the loan limit from ₹ 50 lakh to increase to 75 lakh per borrower against encroachment of agricultural produce supported by NWR / (E-NWR) issued by WDRA registered and regulated warehouses. This will promote loans for individual farmers.
The priority sector lending limit supported by other warehouse receipts will continue to be ₹ 50 lakh per borrower, it said.
RBI said that due to a multiplier effect on both backward and forward linkage and growth to focus on liquidity measures to revive activity in specific sectors, RBI said that TAP would extend the TLTRO on the plan by six months. That is, till 30 September 2021.
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