Business EconomPosted at: May 5 2021 9:44PM ICC hails RBI’s timely support
Kolkata, May 5 (UNI) Indian Chamber of Commerce (ICC) On Wednesday welcomed RBI’s announcement of a series of measures to protect small borrowers and MSMEs amid the
raging Covid wave in the country. Individuals , small business and MSMEs, those who have
not availed loan restructuring facility in past, those who had availed but again need support,
would be considered by banks.
A Rs 50,000 crore liquidity support line was given to banks at Repo Rate for onward lending
to entities including vaccine manufacturers, medical facilities, hospitals and also patients.
ICC feels it is a very timely step and support to small and medium players in healthcare,
hamstrung by liquidity.
Small Finance Banks (SFBs) have also got a boost from RBI by way of a 3-year long-term
repo facility of Rs 10,000 crore for fresh lending up to Rs 10 lakh per borrower. The RBI has
also permitted small finance banks to lend to microfinance institutions (MFIs) with asset size
up to Rs 500 crore as part of priority sector lending. A massive liquidity injection came by way
of second purchase of government securities worth Rs 35,000 crore under the G-sec
Acquisition Programme (G-SAP 1.0) on 20th May. This would ease the G-Sec yields, allow an
orderly evolution of the yield curve and give needed liquidity support to Government of India.
"We, at Indian Chamber of Commerce, whole heartedly appreciate well directed measures by
RBI to support economy and growth," an ICC official said.
UNI BM