Big boost for vaccine producers, pharma players! RBI unleashes Rs 50,000 cr liquidity for emergency healthcare

The Reserve Bank of India Governor Shaktikanta Das in an address on Wednesday, announcing a Rs 50,000 lending programme, said that COVID-19-related healthcare infrastructure will be ramped up. "Will ramp up COVID-related healthcare infra," he said adding that on-tap liquidity window of Rs 50,000 crore with up to 3-year tenor at repo rate is being opened until March 31, 2022.

The governor said that under the scheme, banks can support entities including vaccine manufacturers, medical facilities, hospitals and also patients. Banks will now be able to lend to COVID-19 patients who need money for treatment. This lending will get priority sector classification till repayment or maturity, he said. The window for such loans will remain open till March 31, 2022.

Shaktikanta Das said that banks would create a COVID-19 loan book under the scheme.

"The immediate objective is to save human lives and livelihoods," said the governor during an unscheduled address to the media today.

Additionally, RBI will conduct a 3-year long-term repo operation worth Rs 10,000 crore. The SFB on-lending to MFIs will be categorised as "priority sector", and the limit for the SFB scheme has been set at Rs 10 lakh per borrower.

Das also said that for MSMEs, borrowers of up to Rs 25 crore loans, which were not considered for restructuring earlier, will be considered so till September 31.

Also read: RBI Governor Speech Live Updates: Banks to be incentivised for quick lending amid 2nd Covid wave