As expected, the RBI announced substantial liquidity measures saying it will conduct upto three-year tenure for an amount of upto Rs 100,000 crore at a floating rate linked to policy repo rate.
Under this, liquidity has to be deployed in investment grade corporate bonds, commercial papers, the RBI said. Investment made by banks will be considered as held to maturity, the RBI said.
The RBI has also cut CRR (cash reserve ratio) heavily by 100 bps to 3 percent of NDTL, effective from the fortnight beginning March 28, releasing Rs 137,000 crore liquidity in the banking system, Das said. The minimum daily requirement of CRR maintenance has been brought down to 80 percent from 90 percent.
Also, the marginal standing facility, from 2 percent to 3 percent of SLR, released additional Rs 1.37 lakh crore to the system under the LAF window at the reduced MSF rate, the RBI governor said.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.