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May 05, 2021 / 02:11 PM IST

RBI Governor Speech Highlights: Second purchase of G-SEC for Rs 35,000cr will be conducted on May 20

RBI Governor Address Highlights: Reserve Bank of India (RBI) Governor Shaktikanta Das announced a number of schemes, such as second round of loan restructuring and other relief measures.

RBI Governor Address Highlights: Reserve Bank of India (RBI) Governor Shaktikanta Das made an address on May 5, amid a ferocious second wave of the COVID-19 pandemic.

Lockdowns and other COVID-induced restrictions have been imposed in many states, which is expected to hurt the economy.

Das announced a number of schemes, such as second round of loan restructuring and other relief measures.
He also the second purchase of government securities under G-SAP will be conducted on May 20.
  • May 05, 2021 / 02:04 PM IST

    The LIVE coverage of this blog has ended. Stay tuned to Moneycontrol for more news, views and updates. 

  • May 05, 2021 / 01:28 PM IST

    RBI Governor Speech LIVE Updates | Did RBI governor announce a new loan moratorium and other questions answered

    Announcing a string of relief measures as concerns mount over the economic impact of the second coronavirus wave, the Reserve Bank of India (RBI) governor Shaktikanta Das said on May 5 the borrowers who opted for loan restructuring in 2020 can be given two years to pay back.

    He also allowed the restructuring of loans for individual and small businesses and MSME borrowers who didn't avail the facility in the previous round.

    Read the full story

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  • May 05, 2021 / 01:15 PM IST

    RBI Governor Speech LIVE Updates | Hardika Shah, Founder and CEO, Kinara Capital: This is a welcome announcement by the RBI, the one-time restructuring and extension of moratorium is definitely a welcome relief to an already stressed sector. MSMEs had just about recovered from the ramifications of last year's pandemic and 2021 had begun on a more positive note for small businesses who were looking to scale up this year. However, the unexpected Covid surge and subsequent lockdowns is pushing the MSME sector to its limits. The new allowances will save many small businesses who in turn are our surest bet to economic recovery in India given MSME contributions to national GDP, exports and to job creation.

  • May 05, 2021 / 12:10 PM IST

    RBI Governor Speech LIVE Updates | After Das's address, Nifty Pharma jumped over 2 percent. The top gainers was Lupin which surged over 8 percent followed by Sun Pharma, Cadila Healthcare, Alkem Labs and Aurobindo Pharma among others.

    Other gainers included Hikal which zoomed 10 percent followed by Wockhardt, Sun Pharma Advanced, Marksans Pharma, Pfizer, Shalby, Metropolis Healthcare and Healthcare Global.

    Read the full story

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  • May 05, 2021 / 11:50 AM IST

    RBI Governor Speech LIVE Updates | Dr. Joseph Thomas, Head of Research, Emkay Wealth Management: "The three year facility, which the banks can advance, to the of Rs. 50,000 Crs, is a good measure to immediately help ramp up medical and healthcare facilities. The benefits of this will help enhance capacity for the longer term as it covers diagnostic, preventive as well as combative aspects of healthcare. The smaller entities like micro finance institutions also benefit from the current package, which will bring some relief to them too which is one of the worst affected sectors as of now."

  • May 05, 2021 / 11:49 AM IST

    RBI Governor Speech LIVE Updates | Rajosik Banerjee, Partner and Head - Financial Risk Management, KPMG in India: "RBI's timely intervention of providing term liquidity facility amounting to Rs 50,000 Cr to COVID-19 related healthcare infrastructure and services like Vaccine manufacturers, Medical facilities and Hospitals will be for a tenor upto 3 years, obtainable at repo rate and available till March 31, 2021. This COVID-19 loan will qualify as ‘Priority Sector Lending’ will therefore incentivize bank to lend quickly. This will ensure availability of liquidity and address immediate funding need to scale up operations to deal with the second wave of COVID-19 surge on an instantaneous basis."

  • May 05, 2021 / 11:11 AM IST

    RBI Governor Speech LIVE Updates | Shaktikanta Das also announced rationalisation of some aspects of the KYC norms. The following announcements were made: 

    > Extension of the scope of video KYC for new categories of customers such as proprietorship firms, authorised signatories and beneficial owners of legal entities
    > Conversion of limited KYC accounts opened on the basis of Aadhaar e-KYC authentication in non-face-to-face mode to fully KYC-compliant accounts
     

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  • May 05, 2021 / 11:01 AM IST

    RBI Governor Speech LIVE Updates | Here are some of the relief measures announced:

    > Lending by SFBs to MFIs for on-lending to be classified as Priority Sector Lending

    "In view of the fresh challenges brought on by the pandemic and to address the emergent liquidity position of smaller MFIs, SFBs are now being permitted to reckon fresh lending to smaller MFIs (with asset size of up to Rs 500 crore) for on-lending to individual borrowers as priority sector lending. This facility will be available up to March 31, 2022," the RBI Governor said.

    > Resolution framework 2.0 for COVID-related stressed assets of individuals, small businesses and MSMEs

    Borrowers i.e. individuals and small businesses and MSMEs having aggregate exposure of upto Rs 25 crore and who have not availed restructuring under any of the earlier restructuring frameworks and who were classified as "standard" as on March 31, 2021 shall be eligible to be considered under Resolution Framework 2.0.

  • May 05, 2021 / 10:59 AM IST

    RBI Governor Speech LIVE Updates | Here are some of the relief measures announced:

    > Term liquidity facility of Rs 50,000 crore to ease access to emergency health services

    Under this scheme, banks can now easily provide fresh lending support to vaccine manufactures; importers/suppliers of vaccines and priority medical devices; hospitals/dispensaries; pathology labs; manufactures and suppliers of oxygen and ventilators; importers of vaccines and COVID related drugs; logistics firms and also patients for treatment.

    > Special Long-Term Repo Operations (SLTRO) for small finance banks (SFBs): A special three-year long-term repo operations (SLTRO) of Rs 10,000 crore at repo rate for the SFBs, to be deployed for fresh lending of up to Rs 10 lakh per borrower. This facility will be available till October 31, 2021.

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