The Reserve Bank of India on Friday extended special liquidity of Rs 16000 crore to the Small Industries Development Bank of India (SIDBI) to support Micro, Small and Medium Enterprises (MSMEs). The announcement comes as the country is worst hit by the second wave of the COVID-19.
The RBI's Monetary Policy Committee (MPC) kept the repo rate unchanged in the second bi-monthly policy meet for the financial year 2021-22, governor Shaktikanta Das said on Friday. "RBI keeps interest rates unchanged, continues with accommodative stance to revive and sustain growth on a sustainable basis," Das said.
The repo rate is kept unchanged at 4 percent, reverse repo rate at 3.35 percent. MSF and Bank rate also maintained at 4.25 percent.
On May 5, Reserve Bank had announced a slew of measures including loan restructuring for individual and small businesses. Das had said that borrowers that are individuals and micro, small and medium enterprises (MSMEs) having aggregate exposure of up to Rs 25 crore would be considered for the new scheme.
This would be for those who have not availed restructuring under any of the earlier frameworks, including the Resolution Framework 1.0 of RBI dated August 6, 2020, and who are classified as standard as of March 31, 2021, shall be eligible for the Resolution Framework 2.0, he had said.
First Published: IST