“In order to mitigate the adverse impact of the second wave of the pandemic on certain contact-intensive sectors, a separate liquidity window of Rs 15,000 crore is being opened till March 31, 2022, with tenors of up to three years at the repo rate,” said governor Shaktikanta Das.
The main highlights are:
- Lenders to create Covid Loan Book by increasing credit flow to contact intensive sectors like
- Further, banks will be eligible to park their surplus liquidity up to the size of the Covid loan book at 40 basis points (bps) higher than the reverse repo rate. Currently, the repo rate stands at 4% and the reverse repo rate at 3.35% after the regulator kept rates unchanged on Friday.
The scheme is over and above the liquidity window of Rs 50,000 crore for ramping up Covid-related healthcare infrastructure and services.