Reserve Bank of India (RBI) Governor Shaktikanta Das has made an Unscheduled speech at 10 AM today.
RBI Governor Speech – The speech comes amid a ferocious second wave of COVID-19 cases in India. Many states have introduced lockdowns and other covid restrictions, which could hurt the economy.
As per PTI report, before this address, the governor reportedly met with bankers and shadow lenders and discussed current economic situations, potential stress to balance sheets, credit flow, and liquidity.
RBI Governor Speech 05 May 2021 Updates
In an unscheduled address, the Governor said that the situation in the country has reversed from being on the foothills of strong economic recovery to facing a fresh crisis.
In his speech, The Governor announced a number of schemes, such as the second round of loan restructuring and other relief measures. Here are the RBI Governor Speech Key Updates.
- Reserve Bank of India Governor Shaktikanta Das on Wednesday announced ₹50,000 crore priority lending by banks for hospitals, oxygen suppliers, vaccine importers, COVID drugs, and other COVID-related health infrastructure till March 31, 2022.
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- He said that the RBI will continue to monitor the COVID-19 situation in the country and deploy all resources under it to benefit citizens, business entities, and institutions affected.
- The Governor said that RBI will conduct a special 3-year SLTRO of Rs. 10,000 crores at repo rate for small finance banks which will now lend up to Rs. 10 lakh per borrower. The SLTRO facility will be available till Oct 31, 2021, he added.
- Lenders can review the working capital limits of small businesses and MSMEs as a one-time measure. Those who availed earlier window of restructuring can be given additional two years of moratorium, he said.
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- “India has mounted a valiant defense against Covid. The RBI will continue to monitor the emerging situation and deploy all instruments at its command. The RBI will monitor data closely,” Das said.
- Shaktikanta Das also announced the rationalization of some aspects of the KYC norms. The following announcement was made.
Extension of the scope of video KYC for new categories of customers such as proprietorship firms, authorized signatories, and beneficial owners of legal entities.
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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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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)