By Our Correspondent
NEW DELHI/BHUBANESWAR: Union PNG-Steel Minister Dharmendra Pradhan has welcomed the Rs 50,000 crore package announced by the RBI Governor Shaktikant Das.
“In addition to the economic stimulus of ₹1.70 lakh crore announced by Hon. PM Shri Narendra Modi ’s govt. to give relief to the poor, today’s announcements by Reserve Bank of India (RBI) will address the concerns of the MSMEs, the corporate sector and provide liquidity for the growth of economy,” Union Minister Pradhan said.
The slew of steps aims to ease financial stress and enable the normal functioning of markets. RBI is continuously monitoring the economy to support growth and help India emerge stronger in the post Covid-19 world.
To increase MSME liquidity, RBI announced a targeted long-term repo operation totalling Rs 50,000 crore aimed at mid and small NBFCs and MFIs. This amount can be revised upwards if needed in the future. RBI also cut the reverse repo rate by 25 bps to 3.75%, he said.
Giving a fillip to farmers, MSMEs and housing sector, RBI announced a special refinance facility totalling Rs 50,000 crore for NABARD, SIDBI and the National Housing Bank. Of this, Rs 25,000 crore goes to NABARD, Rs 15,000 crore to SIDBI, and Rs 10,000 crore to NHB.
The RBI has also increased the ways and means advance limit for states to 60% over and above the level as on March 31 to help state govts. tide over cash flow problems due to a temporary dip in revenue collections, Pradhan said.
To further ease the worries of MSMEs that are in danger of becoming NPA accounts, it has now been decided that the NPA classification norms will exclude the 3-month moratorium window that banks are allowed to give on loan repayments
“These steps will come as a massive confidence booster for the common man as well as the corporate sector, including large and small businesses and will help in battling out the impact of #Covid-19.We shall cure, and we shall endure,” Pradhan added.
