Reserve Bank of India Governor Shaktikanta Das delivers an unexpected speech as the second wave of coronavirus continues to devastate the country. India has become the hotspot for the coronavirus, with a surge in cases overwhelming the health system. India has already crossed the 2 crore mark for the total number of cases of Covid infections, which is the second highest in the world – just behind the United States and ahead of Brazil.
Prime Minister Narendra Modi has so far resisted pressure to impose a lockdown to stem the spread of the dreaded virus. Earlier this week, the chairman of the Confederation of Indian Industry and managing director of Kotak Mahindra Bank Uday Kotak called on the government to consider reducing economic activity to cut the chain of transmission of the coronavirus.
Dr Anthony Fauci, America’s foremost public health specialist and chief medical adviser to the White House, also recently recommended a nationwide lockdown in India to stop the spread of the pandemic.
Here are some highlights:
Have confidence in India’s ability to emerge from the Covid-19 crisis, Shaktikanta Das said and added that the RBI continues to monitor the Covid-19 situation. India is fighting a fierce increase in Corona cases and we must mobilize all of our resources with renewed vigor, the governor added.
The governor of the RBI announced priority loans of Rs 50,000 crore by banks for hospitals, oxygen suppliers, importers of vaccines and Covid drugs by March 31, 2022
Companies learn to work within the framework of localized and targeted containment measures.
Manufacturing disruptions are minimal and we do not expect a major deviation from our growth projection in April 2021
We have decided to provide a term liquidity facility of Rs. 50,000 crore to facilitate access of new funds to emergency medical services.
Banks can lend more to the medical services sector until March 31, 2022
We have decided on a 2.0 resolution framework to help stressed small borrowers (both individuals and MSMEs) who are most vulnerable in the current situation.