On Wednesday, Reserve Bank of India announced that it is going to provide loans for individuals and small borrowers for up to 2 years. It is a Covid package of Rs. 50,000 Crores for vaccine makers, medical equipment supplies, hospitals and even patients in need of funds to treat the disease, while opening up another sound.
It also mentioned that it would be buying Rs. 50,000 crore of bonds from the secondary market on May 20.This is a part of Government Securities Acquisition programme scheduled for quarter amount of Rs. 25,000 crore from 1 Trillion. This was expressed in an unscheduled press conference mentioned by RBI Governor Shaktikanta Das.
This priority sector loans are exempted from maintain cash reserve or statutory liquidity ratio. It was mentioned that banks can create a book to lend this loan amount directly or indirectly oe or through intermediaries that creation will be under a scheme as the Covid loan book. Under the view of Group chief Economic Advisor Sowmya karti Group that the state bank of India provides health loan which will provide certain effect on other sector.
Among 6 Trillion an amount of 50,000 crores which is about roughly of 9% India’s total health expenditure. RBI measures were taken after consultation with banks and the Government.