The Reserve Bank of India is ready to move on to conventions and take action to deal with COVID-19, Governor Shaktikanta Das said on Wednesday morning.
He said the second purchase of government securities worth Rs 35,000 crore under the G-sec acquisition program (G-SAP 1.0) will be made on May 20 for an orderly evolution of the yield curve. rate as a new wave of COVID-19 threatens to hit the economy.
The first purchase of Rs 25,000 crore last month received an enthusiastic response from the market, said Reserve Bank of India (RBI) Governor Shaktikanta Das, announcing a series of measures aimed at relieving various segments of the economy. affected by the second wave of the pandemic.
RBI will make a second purchase of government securities (G-secs) totaling Rs 35,000 cr in two weeks, he said.
To clarify its program of buying bonds through open market operations (OMO), Das announced a target of Rs 1 lakh crore for the first quarter under the new instrument called G-SAP 1.0.
Regarding the rate of price increase, he said, food and oil inflation pushed core inflation.
The normal monsoon forecast should help contain food price inflation, it
The RBI governor, in an unscheduled announcement, said banks had an incentive to extend quick credit to weak sectors. Banks will create a COVID loan book on their balance sheets and can place money equal to the COVID book with RBI at 40 basis points above the reverse repo rate, he said.
At 10:40 a.m., the Sensex was up 231.42 points or 0.48% to 48,484.93, and the Nifty was up 73.40 points or 0.51% to 14,569.90.
Announcing relief measures, Das said, individuals, small businesses, MSMEs with exposure of up to Rs 25 crore who have not benefited from a one-off restructuring will be eligible for the resolution 2.0 framework. Borrowers must be standard by March 31, 2021 to be eligible for the 2.0 resolution framework, Das said.
Small financial banks (SFBs) will be allowed to lend to small MFIs with assets of Rs 500 crore. This facility will be available until March 31, 22.