Mumbai: India’s Reserve Bank will initiate measures to combat economic turbulence unleashed by the resurgence of Covid-19.
In virtual address, RBI Governor Shaktikanta Das announced a number of liquidity enhancement and targeted measures to ease the build of economic strain seen recently.
Accordingly, RBI will conduct the second purchase of G-Secs worth Rs 35,000 crore on May 20.
Besides, RBI announced a targeted on-tap liquidity window of Rs 50,000 crore to set up Covid-related healthcare infra.
Furthermore, the Reserve Bank will allow restructuring for borrowers with exposure of Rs 25 crore, who have not been beneficiaries of RBI’s previous loan restructuring schemes.
As of now, India suffers from a massive spike in Covid-19 infections.
The latest spike has brought in record number of patients, thereby, impeding healthcare infrastructure’s ability to deal with the surge.
Consequently, the situation has forced state governments to implement local lockdowns and travel restrictions which have started to slowdown economic activity.