RBI Governer announces Rs 50 Thousand Crore Liquidity Support for Health Sector in India

With the raging Covid pandemic putting severe stress on the economy, the Reserve Bank of India(RBI) on Wednesday, Unveiled a host of measures to boost fund flow to the healthcare sector and ease the pain of small borrowers and units.
The RBI has opened an on-tap liquidity window of Rs 50,000 crore with tenors of up to three years at the repo rate 4% till March 31, 2022, To boost provision of immediate liquidity for ramping up Covid-related healthcare infrastructure and services in the country.
Under the scheme, banks can provide fresh lending support to a wide range of entities including- Vaccine manufacturers, importer and suppliers of vaccines and priority medical devices, hospitals and dispensaries, pathology labs, manufactures and suppliers of oxygen and ventilators, importers of vaccines and Covid-related drugs, logistics firms and also patients for treatment, RBI Governor Shaktikanta Das said while announcing the measures.
Banks are expected to create a Covid loan book under the scheme, he said. By way of an additional incentive, such banks will be eligible to park their surplus liquidity up to the size of the Covid loan book with the RBI, Under the reverse repo window at a rate which is 25 bps lower than the repo rate or, termed in a different way, 40 bps higher than the reverse repo rate.

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