RBI announces Rs 50,000 crore liquidity to ramp up health infra for Covid fight

New Delhi, May 05: Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday said that the RBI is monitoring the situation very closely and added that localised containment measures is keeping demand buoyant as compared to last year. The central bank chief announced a term liquidity facility of Rs 50,000 crore for access to emergency health security.

Addressing a press conference, Das said "RBI will continue to monitor the emerging COVID-19 situation and will deploy all resources and instruments at its command especially for the citizens, business entities, and institutions beleaguered by the 2nd wave."

"Localised and targeted containment measures are enabling businesses and households to adapt; hence, effect on aggregate demand is expected to be moderate in comparison to last year," Das said.

The RBI Governor also said banks can provide loans to vaccine manufacturers, oxygen manufacturers and other Covid related services.

Till repayment or maturity, the lending wil be categorised as priority sector lending. And banks have been directed to create a Covid loan book for this facility.

As India grapples with increading number of coronavirus cases, a number of cities and states announced lockdowns of varying intensities to check spread of coronavirus infections.