In an informal speech, the Governor said that the situation in the country has changed from being in the mountains of strong economic recovery to a new crisis.
The Reserve Bank of India (RBI) on May 5 announced several measures to protect small and medium enterprises, individual borrowers from the negative impact of the second wave of COVID-19 nationwide.
It has also made arrangements for banks to improve business lending and restructure lending to strengthen the fear of money in the system to help reduce the problem.
The RBI announced the Resolution Framework 2.0 of the accredited COVID-related assets for individuals, small businesses and MSMEs and reiterated its commitment to do everything in its power to 'save lives and restore livelihoods by all means'.
Considering that the resurgence of the COVID-19 epidemic in India has put individual lenders, small businesses and MSMEs at high risk, the RBI has allowed lenders namely individuals and small businesses and MSMEs to get joint ventures up to cr 25 crore, who have not yet been formed. redesigned under any previous redevelopment frameworks (including under Resolution Framework 1.0 dated August 6, 2020), and those designated as ‘Standard’ from March 31, 2021, do not qualify for consideration under Resolution Framework 2.0.
The rescheduling under the proposed framework may be implemented until September 30, 2021 and will have to be done within 90 days after application.
In the case of individual lenders and small businesses using their loan restructuring under Resolution Framework 1.0, where the settlement plan allows for less than two years of suspension, lending institutions are allowed to use this window to convert those programs to a growth period of suspension and / or extend residual years. 2 in total. Some situations will remain the same.
In the case of small businesses and pre-restructured MSMEs, lending institutions are allowed as a single step, to review approved operating limits, based on a review of operating cash flow, at the end.
Purchase of G-sec
The RBI has announced that it will buy government securities of 000 35,000 crore in the next two weeks under the recently launched GSAP-2.0.
Providing ongoing support to small business units, small and medium enterprises, and other informal sector companies that were badly affected during the current wave of the epidemic, has decided to undertake a special three-year long term (SLTRO) project of ₹ 10,000 crore at a small lending rate. - ₹ 10 lakh per borrower. The facility will be available until October 31, 2021.
SFB lending to Micro-Finance Institutions (MFIs) loans will be called Priority Sector Lending.
Due to the new challenges posed by the epidemic and to address the already financial situation of small MFIs, SFBs are now allowed to look at new loans to smaller MFIs (with assets of up to cr 500 crore) for individual lending as a priority sector loan. The facility will be available until March 31, 2022.
To enable State governments to better manage their finances in terms of their finances and market borrowing, the maximum number of OD days per quarter is increased from 36 days to 50 days and the number of consecutive OD days from 14 to 21 days.
The facility will be available until September 30, 2021. The provincial boundaries of Ways and Means Advance (WMA) have already been upgraded by April 23, 2021.
In an unplanned speech, RBI Governor Shaktikanta Das said the situation in the country had deteriorated to the point where it was in the mountains of strong economic recovery and faced a new crisis.
"Restoring livelihoods has become a priority," he said. "We do not expect any major deviations from our estimates," Mr Das said.
He said the RBI would continue to monitor the situation of COVID-19 in the country, and would use all its resources.
RBI Governor said a regular rain forecast would help contain food inflation. Mr Das said the IMD forecast for normal rainfall is expected to meet domestic demand and evacuation by 2021-22. It will also have a cool effect on inflationary pressures, he added.
Mr. Das stated “the second wave, though debilitating, is not
unsurmountable. As I have said earlier, it is during our darkest moments
that we must focus on the light. We have lessons to draw from our
experience of last year, when as a nation we came together and overcame
the once-in-a-generation challenge imposed by the first wave of the
pandemic.”
Explaining that the RBI is ready to fight to ensure the financial situation remains stable and the markets continue to function well, he said, “We will work with Government to address the extreme hardships faced by our citizens in this hour of crisis. We are committed to going the extra mile and building new routes where the situation demands it. ”
Posts
