Mumbai: The Reserve Bank of India (RBI) has taken measures to increase lending and stimulate small businesses, agriculture, and real estate.
Key measures and benefits of the second COVID package are:
1. 50,000 crores will be given to banks to make more money with non-bank financial institutions (NBFC). The Small Industry Development Bank of India (SIDB), the National Bank for Agriculture and Rural Development (NABARD) and the National Housing Bank (NHB) will get Rs 50,000 crore.
2. There will be more loans available in the market.
3. The reverse repo, the rate of interest that banks hold in the Reserve Bank, has been reduced by a quarterly percentage to 3.75%.
4. States have increased the borrowing rate of the Reserve Bank of India (RBI) by 60%.
5. Support for states to deal with the financial crisis.
6. The loan repayment period has been reduced from 90 days to 180 days.
7. The moratorium period is March 1- May, not later than 3 months after the moratorium period.
The RBI has instructed commercial and cooperative banks to stop distributing dividends.
