The Reserve Bank Of India (RBI) announced on Friday that it has decided to open a separate liquidity window of Rs 15,000 crore with tenors of up to three years at the repo rate till March 31, 2022 for certain contact-intensive sectors i.e., 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. Under the scheme, banks are expected to create a separate COVID loan book.
By way of an incentive, such banks will be eligible to park their surplus liquidity up to the size of the COVID loan book created under this scheme with the Reserve Bank under the reverse repo window at a rate which is 25 bps lower than the repo rate. Banks desirous of deploying their own resources without availing funds from the Reserve Bank under the scheme for lending to the specified segments mentioned above will also be eligible for the incentive.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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