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Tackling Second Wave : RBI Announces Rs 50,000 Cr For Ramping Health Care, Admits India Fighting Ferocious Rise In Covid Cases

 

RBI has announced Rs 50,000 crore liquidity for ramping up COVID-related healthcare infrastruture and services till March 2022. This announcement was made by Shaktikanta Das, RBI Governor, while addressing the media

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.

Build-up in input price pressures across sectors, driven in part by elevated global commodity prices remains a concern. Inflation trajectory over rest of the yr will be shaped by COVID19 infections & impact of localised containment measures on supply chains & logistics.

Das further pointed out in his address, RBI will continue to monitor the emerging COVID19 situation and will deploy all resources and instruments at its command especially for the citizens, business entities, and institutions beleaguered by the second wave.

The devastating speed with which the virus affects has to be matched by swift and wide-ranging actions that are sequenced, calibrated and well-timed so as to reach out to various sections including the most vulnerable. India is fighting the ferocious rise in cases. The forecast of a normal monsoon by IMD is expected to sustain rural demand and overall output in 2021-22, while also having soothing impact on inflation pressures.

Elaborating further,  Das said, Given the positive response from the market, it has been decided that the second purchase of government securities for an aggregate amount of Rs 35,000 crores under G-SAP 1.0 will be conducted on 20th May.

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