The Reserve Bank of India (RBI) Governor has announced two major initiatives to support the nation against COVID pandemic.
RBI has announced Term Liquidity Facility of Rs 50,000 crore with tenure of up to 3 years, at repo rate. Banks can give fresh lending support to variety of stakeholders under this facility. Bank will be provided incentives to provide credit under this facility.
However, this lending facility will be available till 31st March, 2022.
Further, 3 years repo operations of Rs 10,000 crore at repo rate, for fresh lending up to Rs 10 lakh per borrow. It is to support micro, small and other unorganised sector entities till 31st October 2021.