Mumbai: Reserve Bank of India (RBI) on Thursday proposed to extend the facilities of liquidity terms of RS 50,000 Crore offered to emergency health services with three months to 30 June 2022.
Last year, RBI has announced taps.
The RS 50,000 Crore liquidity window, at the repo level with a tenor of up to three years, to increase the provisions of the liquidity immediately to improve the infrastructure and health services related to Covid-19 in this country.
Banks are given incentives for rapid credit delivery based on schemes through the extension of the priority sector classification for the loan until March 31, 2022.
“Given the response to the scheme, it is now proposed to extend this window until June 30, 2022 from March 31, 2022 as announced before, “RBI said in a statement about the development and policy of regulations on Thursday.
Under the scheme, the bank is expected to create a Covid-19 loan book.
By means of additional incentives, such banks are eligible to park their surplus liquidity up to the size of the Covid-19 loan book with the RBI under the reverse repo window at a speed of 25 bps lower than the repo level, which is 40 bps higher than the level of the repo reversed .
Until February 4, 2022, the bank had deployed their own funds in a 9,654 crore RS tone towards Covid-19-related emergency health services, RBI said.
The central bank also extended the liquidity window to tap for the intensive sectors of contacts until June 30, 2022.
On June 4, 2021, the RBI has decided to open a separate liquidity window of Rs 15,000 Crore at the repo level with tenors of up.
For three years available until March 31, 2022 for certain contact sectors.
“Given the response to the scheme, it is now proposed to extend this window until June 30, 2022,” RBI said.
The bank has mobilized their own funds with Rs 5,041 Crore tones (until 4 February 2022) to entities under the intensive sectors of contacts.
Read Alsorbi make repo rates unchanged at 4%; Maintaining the accommodating Stancethe Reserve Bank of India (RBI) Monetary Committee (MPC) on Wednesday unanimously decided to keep the repo not change at 4 percent for the ten consecutive time and continued with an accommodating attitude.
Repo Rate is a level where the RBI lends to the bank, while the reverse repo level is