'Have faith in India's ability to come out of Covid crisis,' says RBI Guv Das

   By Prabhjot kaur ,  05-May-2021
'Have faith in India's ability to come out of Covid crisis,' says RBI Guv Das

Reserve Bank of India Governor Shaktikanta Das delivers an unscheduled speech on Wednesday as the second wave of coronavirus bruises the economy. India has been posted a record increase in COVID-19 cases in the last few weeks, with the number of total infections surpassing two crores. Market benchmark Sensex rose over 200 points ahead of Das' speech. The 30-share BSE index jumped 266.09 points or 0.55 percent to 48,519.60 in initial deals. Similarly, the broader NSE Nifty advanced 81.45 points or 0.56 per cent to 14,577.95.

Here are the highlights from the speech:

  • RBI Governor says the situation has reversed from being on the foothills of strong economic recovery to facing a fresh crisis.

  • "Have faith in India's ability to come out of Covid-19 crisis," says Shaktikanta Das. RBI continues to monitor the Covid-19 situation and will deploy all its resources, he added.

  • Shaktikanta Das says wide-ranging and swift actions are needed against the spread of the second COVID-19 wave. Central bank is monitoring emerging developments.

  • Businesses have learnt to survive despite Covid restrictions and containments, says Das.

  • Good monsoon expectation wil keep rural demand strong, he said.

  • India has mounted a valiant defence against Covid. The RBI will continue to monitor the emerging situation and deploy all instruments at its command, Das said. Quarantine facility of the RBI continues to operate with more than 200 officers working away from their homes.

  • "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," says Das. 

  • RBI Governor announces on-tap liquidity window of Rs 50,000 crore till March 2022, to lend to vaccine manufacturers, suppliers of oxygen cylinders and ventilators.

  • Banks are being incentivized to extend swift credit to weak sectors. Banks will create a COVID loan book in their balance sheets and can park money equal to a COVID book with RBI at 40 bps above reverse repo rate.

  • Borrowers, individuals and MSMEs, permitted one-time restructuring till September 30, 2021. Under restructuring 1.0, the period of moratorium can be extended up to a total of 2 years.

  • RBI has decided that the second purchase of G-SEC for Rs 35,000 cr under G-SAP 1.0 will be conducted on May 20.

  • RBI announces rationalization of KYC compliance norms, provides for video-based KYC for certain categories: Governor Das.

  • RBI provides 2nd window to individual, small borrowers having up to Rs 25 crore loans for restructuring loans if not availed earlier, said the RBI governor.

  • RBI relaxes rules for availing overdraft facility for state governments up to September 30.






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