The Reserve Bank of India asked banks on Wednesday to let certain borrowers have more time to repay loans, among other support measures, amid the second wave of COVID-19 infections in the country that has led to strict lockdowns in several states.
The moratorium will be available to individuals and small and medium enterprises that have not restructured their loans in 2020 and were classified as standard accounts till March 2021, RBI Governor Shaktikanta Das told reporters.
Also, the Reserve Bank of India Governor, Shaktikanta Das, in a speech at 10 AM on Wednesday said, “Indian economy was advantageously poised against other countries at the end of the last fiscal. The situation has done a U-turn and India is fighting against the 2nd wave of Covid-19. Restoring normalcy has become imperative. RBI will deploy all its resources in the services of the nation. The devastating speed of covid-19 pandemic spread has to be matched by relevant steps by the central bank.”
RBI Governor announces Rs 50,000 cr priority lending by banks for hospitals, oxygen suppliers, vaccine importers, COVID-19 drugs by March 31, 2022.
In a relief that is welcome, Governor Shaktikanta Das said RBI has provided 2nd window to individual, small borrowers having up to Rs 25 cr loans for restructuring loans if not availed earlier.
RBI Governor also announced rationalisation of KYC compliance norms, provides for video-based KYC for certain categories.
Special long term repo operations for small finance banks to provide further support to micro, small & other unorganized sector entities, 3-yr repo operations of Rs. 10,000 crore at repo rate, for fresh lending up to Rs 10 lakh per borrower facility up to 31 Oct’ 21, said RBI Governor.
In view of fresh challenges, Small Finance Banks are now permitted to regard fresh on-lending to MFIs with asset size up to Rs 500 crore, as priority sector lending, facility available up to 31 March, 2022, announced RBI Governor.