UPSC Courses

DNA banner


  • 07 May, 2021

  • 15 Min Read

RBI measures against COVID-19

RBI measures against COVID-19

The RBI Governor Shri Shaktikanta Das today announced a series of measures to support the nation’s fight against the second wave of COVID-19 infections.

1. Term Liquidity Facility of ?50,000 crore to Ease Access to Emergency Health Services

  • Term Liquidity Facility of Rs. 50,000 crore with tenure of up to 3 years, at repo rate, to ease access to emergency health services, for ramping up COVID-related health infrastructure & services.
  • Banks can give fresh lending support to variety of stakeholders under this facility.
  • This lending facility will be available up to March 31, 2022. Banks will be provided incentives to provide credit under this facility.

2. Special Long Term Repo Operations for Small Finance Banks

  • In order to provide further support to micro, small and other unorganized sector entities, 3-year repo operations of Rs. 10,000 crore at repo rate, for fresh lending up to Rs 10 lakh per borrower; facility is available up to 31 October, 2021.

3. Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as priority sector lending

  • In view of fresh challenges, SFBs are now permitted to regard fresh on-lending to MFIs with asset size up to Rs. 500 crore, as priority sector lending. This facility will be available up to 31 March, 2022.

4. Credit flow to MSME Entrepreneurs

  • To further incentivize inclusion of unbanked MSMEs into banking system, exemption provided in February, 2021 wherein scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of CRR, is now extended to December 31, 2021.

5. Stress Resolution Framework 2.0 for Individuals, Small Businesses and MSMEs

Following set of measures have been announced to relieve stress faced by most vulnerable categories of borrowers – namely individuals, borrowers and MSMEs.

  • Individuals, borrowers and MSMEs with aggregate exposure up to Rs. 25 crore, who have not availed restructuring under any previous frameworks, who were classified as standard on 31 March, 2021, will be eligible to be considered under Resolution Framework 2.0. Restructuring under new framework can be invoked till September 30, 2021 and will have to be implemented within 90 days after invocation.
  • For individuals and small businesses who have availed restructuring of loans under Resolution Framework 1.0, where moratorium of less than 2 years was permitted, lending institutions can now increase the period and/or extend residual tenure up to a total period of 2 years.
  • In respect of small businesses and MSMEs restructured earlier, lending institutions are now permitted to review working capital sanction limits, as a one-time measure.

6. Rationalization of KYC norms for enhanced customer experience

Steps being proposed include:

  • Extending scope to video KYC for new customer categories such as proprietorship firms,
  • Conversion of limited KYC accounts to fully KYC compliant accounts,
  • Introduction of more customer-friendly options in KYC updating and
  • enabling the use of KYC Identifier of Centralised KYC Registry (CKYCR) for V-CIP and submission of electronic documents as identify proof

7. Floating Provisions and Countercyclical Provisioning Buffer

  • Banks can now use 100% of floating provisions held by them, as on December 31, 2020, for making specific provisions for NPAs; such utilization is permitted up to March 31, 2022.

8. Relaxation of overdraft facility for states

  • Maximum number of days of overdraft in a quarter for state governments has been increased from 36 to 50 days. The number of consecutive days of OD has been increased from 14 to 21 days; facility available up to September 30, 2021.

Global economy is showing signs of recovery

  • IMF has in April, 2021 revised global growth projections for 2021 to 6% from 5.5%, on the assumption of availability of vaccines in advanced economies (Aes) and some emerging market economies (EMEs) by the summer of 2021 and in most other countries by the second half of 2022
  • Agricuture sector continues to be resilient with a record food grain production in 2020-21, which provides food security and support to other sectors.
  • IMD’s forecast of normal monsoon is also expected to sustain rural demand and overall output in 2021-22, thereby soothing inflationary pressures.
  • Localized and targeted containment measures are enabling businesses and households to adapt. Hence, effect on aggregate demand is expected to be moderate in comparison to last year.
  • CPI inflation is dubbed to 5.5% in March, 2021 from 5.0% in February, 2021, on the back of a pick-up in food and fuel inflation and Normal monsoon should help contain food price pressures, especially in cereals and pulses.
  • Merchandise imports and exports continue to witness robust growth performance, even in April 2021.
  • Foreign exchange reserves give us confidence to deal with global spill-over
  • Domestic financial conditions will remain easy, given abundant surplus liquidity
  • Given the positive market response, he announced that second purchase of Government securities for Rs. 35,000 crore will be conducted on May 20, 2021.

Source: PIB

What is Mission Indradhanush ?

Mission Indradhanush was launched in 2014 under the Ministry of Health and Family Welfare.  1. Between 2009 - 2013, only 1% coverage per year has increased. We have to make it to 5%. 2. Objectives of Mission Indradhanush: We have the aim of full coverage by 2020. Cover all those children who are either unvaccinated or are part

Mediation Bill 2021 - Detailed Overview

A Bill that could alter the Mediation landscape The background behind Mediation Bill:         In General, Disputes Became part and parcel of  Day-to-Day Life. Someone or the Other belonging to family or else not a part of the family would be fighting for something. These Disputes may be for Smaller or B

Military exercises of India

List of all Military Exercises of India 2021 Military Exercises of India with Neighbours Sampriti: India & Bangladesh Mitra Shakti: India & Sri Lanka Surya Kiran: India & Nepal Hand in Hand Exercise: India & China Ekuverin: India & Maldives Military Exercises of India with Other countries Maitree Exer

Consumer Protection Rules, 2021

Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021 1) Pecuniary Jurisdiction The Consumer Protection Act, 2019 The Consumer Protection Act, 2019 promulgates a three-tier quasi-judicial mechanism for redressal of consumer disputes namely district commissions, state

Swachh Bharat Mission (Urban) 2.0

The Swachh Bharat Mission - Urban (SBM-U), launched on 2nd October 2014 aims at making urban India free from open defecation and achieving 100% scientific management of municipal solid waste in 4,041 statutory towns in the country. The objectives of the mission are mentioned below: Elimination of open defecation Eradication of Manual S

Students Achievement

Search By Date

Newsletter Subscription
SMS Alerts