RBI announces priority lending for Covid healthcare

RBI announces Rs 50,000 cr  for a tenure of three years  for banks priority lending for Covid healthcare. Governor Shakti Kant Das on Wednesday announced that this move is aimed at easing access to emergency healthcare services. "To boost the provision of immediate liquidity for ramping up immediate covid-related infrastructure and services in the country.Liquidity window of Rs 50,000 crore at the repo rate is being opened for March 31, 2022. Under this scheme, banks can provide fresh lending support to a wide-ranging of entities including vaccine manufacturers, importers and suppliers of vaccines and priority medical devices, hospitals and dispensaries, pathology labs, manufacturers and suppliers of oxygen and ventilators, and also patients for treatment, the governor said.

Addresing a press conference in Mumbai Das announced a special, three-year, long-term repo operations of Rs10,000 crore. This facility will be available till October 31, 2021. He  said that the central bank will continue to monitor the emerging Covid-19 crisis situation in the country. "The situation has altered drastically in the last few weeks. New mutant strains have emerged, causing a severe strain on health infrastructure. On the condition of the domestic market, Das said, "Consumption is holding up. Average daily electricity generation is up by 40 per cent year-on-year in April. Everyone now has learnt how to conduct businesses within restricted mobility," Das said.