Reserve Bank of India (RBI) governor Shaktikanta Das on Friday said that adequate system-level liquidity has been ensured and targeted liquidity to stressed entities have been provided. He said this while announcing the bi-monthly monetary policy review.
Das further said that the focus of RBI is turning to equitable distribution of liquidity. He added that they will continue with a proactive and pre-emptive approach of transmission to return the economy to growth.
"Rs 36,545 crore liquidity infused in the industry," he said.
He further said that money aggregates (M3) grew by 9.9 percent year-on-year (YoY) in May 2021, while bank credit grew by 6 percent YOY in May 2021.
Additionally, Das announced an on-tap liquidity window for contact intensive sectors to aid ailing businesses.
"In order to mitigate the adverse impact of the second COVID wave on contact intensive sectors, a separate liquidity window of Rs 15,000 crore is being opened till March 31, 2022, with tenors of up to 3 years at the repo rate," Das said.
The Reserve Bank of India (RBI), meanwhile, decided to leave the benchmark interest rate unchanged at 4 percent but maintained an accommodative stance as the economy faces the heat of the second COVID wave.
This is the sixth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.
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