RBI introduces Rs 15,000 crore liquidity window for contact-intensive sectors; loans of up to Rs 50 crore for MSMEs can be restructured

By way of an incentive, banks will be permitted to park their surplus liquidity up to the size of loan book created under this scheme with the RBI under reverse repo window at a rate which is 25 basis points lower than repo rate.

The Reserve Bank of India (RBI) on Friday opened a separate liquidity window of Rs 15,000 crore till March 31 next year to mitigate the adverse impact of Covid-19`s second wave on certain contact-intensive sectors. The facility will have tenors of up to three years at repo rate (4 percent), said RBI Governor Shaktikanta Das. Under the scheme, banks can provide fresh lending support to hotels and restaurants; tourism -- travel agents, tour operators and adventure/heritage facilities; aviation ancillary services -- ground handling and supply chain; and other services that include private bus operators, car repair services, rent-a-car service providers, event/conference organisers, spa clinics, and beauty parlours/saloons. By way of an incentive, banks will be permitted to park their surplus liquidity up to the size of the loan book created under this scheme with the RBI under reverse repo window at a rate that is 25 basis points lower than the repo rate.