Today, Reserve Bank of India (RBI) Governor Shaktikanta Das addressed the media. His address was not scheduled earlier. The second wave of corona virus in the country has created a catastrophic situation. On the one hand, where the health system has collapsed, on the other hand, people are not getting hurt by black marketing. However, the daily cases of corona have been declining for a few days, which is a sign of relief. But the public is upset with the lockdown imposed in the states as it has a direct impact on their earnings. The country’s economy also needs to take tough steps to recover from this time of crisis. In such a situation, this address of the central bank is very important.
- He said that the RBI is monitoring the situation in Corona. There was a good recovery in the economy after the first wave of Corona. Considering the spread of the second wave of Covid-19, extensive and quick actions are required. There has been a faster recovery in India than other countries of the world. The Meteorological Department has predicted a normal monsoon this year. A good monsoon is expected to increase demand in rural areas.
- Consumption has increased during January to March. Power consumption has also increased. Freight of Indian Railways has been increased. PMI peaked at 55.5 in April. CPI has also increased. It was 5.5 percent in March. India’s exports increased significantly in March. According to the figures of the Government of India, it increased rapidly in April. There has been an increase in the prices of pulses, pulses, oilseeds and other essential commodities. This is due to the breakdown of the supply chain due to the corona.
- Shaktikanta Das during his address thanked the doctors, nurses and other healthcare workers and police personnel for helping in fighting the epidemic. He said that RBI will deploy all its resources and equipment especially for citizens, business entities and institutions affected by the second wave.
- RBI announced a special liquidity facility of Rs 50,000 crore for health facilities related to Covid-19 by March 2022. Through this, banks will provide vaccine manufactures, vaccine transport at repo rate, loans to exporters in easy installments. Apart from this, hospitals, health service providers will also get the benefit.
- Overdraft facility will be provided for the states. States will get concession in overdraft. The RBI governor said that Covid loan books will be created for the priority sector.
- The central bank has announced long-term repo operations for small finance banks (SFBs) up to Rs 10,000 crore. It will be used for loans up to Rs 10 lakh per borrower.
- The governor also said that in view of the current situation, some changes have been made in the KYC rule. KYC has been approved through video. RBI has allowed the use of Limited KYC till December 1, 2021.