RBI Lends Hand to Fight Against the Economic Crisis

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The RBI has swung into action last Wednesday to fight against the whirlwind caused by the 2nd wave of Covid-19. The Central Bank came up to lend Rs 50,000 crore with tenure up to 3 years at the repo rate of 4% which will help the healthcare sector in which the major beneficiaries will be pharmaceutical manufacturers, diagnostic sector, and vaccine makers, the diagnostic chain can use this opportunity to lessen the crisis in Tier-2  cities. The aftermath of the governor Mr. Shaktikanta Das boosted up the share market as well, Sensex and Niffty closed with an increase of 424 and 121 points respectively. He also mentioned that RBI will conduct an SLTRO of Rs 10,000 crore with SFBs at repo rate, which will help individuals, small business, and MSME's as they will be eligible for restructuring which will be open up to 30 September and must be implemented within 90 days, also the SFB's will now be able to provide loan to MFI's under the asset size of Rs 500 crore. 

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Somesh Tiwari said…
Very informative!
9 May 2021 at 10:38
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