RBI allows loan restructuring for individuals, MSMEs hit by fresh COVID-19 wave
Mumbai: Reserve Bank on Wednesday announced a slew of measures including loan restructuring for individual and small businesses hit hard by fresh COVID-19 wave.
To augment supply of goods for COVID care, the central bank opened Rs 50,000 crore on-tap window to ease access to emergency health services to boost provision of immediate liquidity for ramping up COVID-19 related healthcare infrastructure and services in the country.
"Banks are being incentivised for quick delivery of credit under the scheme, through extension of priority sector classification to such lending... and these loans will continue to be classified under priority sector till repayment or maturity, whichever is earlier," RBI Governor Shaktikanta Das said an unscheduled press briefing.
This liquidity window is being opened till March 31, 2022, he said, adding that under the scheme, banks can provide fresh lending support to a wide ranging of entities including vaccine manufacturers, importers and suppliers of vaccine and medical devices, hospitals and dispensaries and suppliers of oxygen and ventilators importers and also patients for treatment.
With regard to restructuring he said, borrowers that are individuals and micro, small and medium enterprises (MSMEs) having an aggregate exposure of up to Rs 25 crore would be considered for the new scheme.
This would be for those who have not availed restructuring under any of the earlier frameworks, including the Resolution Framework 1.0 of RBI dated August 6, 2020, and who are classified as standard as on March 31, 2021, shall be eligible for the Resolution Framework 2.0, he said.
Under the proposed framework, bank may be invoked up to September 30, and shall have to be implemented within 90 days after invocation, he added.
RBI has also introduced Rs 10,000-crore special long-term repo operation for small finance banks. Under this, loans up to Rs 10 lakh to MSMEs will be considered as priority sector lending, Das said.
Das also announced relaxation in overdraft facility for state governments to enable them to better manage their fiscal situation in terms of their cash flows and market borrowing.
Now the maximum number of days of overdraft, that are only in a quarter, have been increased from 36 to 50 days.
RBI also announced rationalisation of certain components of the extent know-your-customer (KYC) norms for enhancing customer convenience.
These include extending the scope to video KYC known as video based customer identification process, he said.
Further, keeping in view the COVID-19 related restrictions in various parts of the country, RBI regulated entities have been asked that for the customer accounts were periodic KYC updating is new or pending, "no punitive restriction on operation of customer accounts" will be imposed till December 31, 2021, unless warranted, due to any other reason.
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India should aim to be among world's top 3 naval powers in 10-12 years: Rajnath Singh
Rajnath Singh reviews Project Seabird work in Karwar
Karwar, Jun 24: Defence Minister Rajnath Singh on Thursday said the naval base being developed here under "Project Seabird" should be Asia's biggest, and he would try to get budget allocation enhanced for it, if required.
He also said India should aim to be among one of the top three naval powers in the world in the next 10-12 years time.
"I had a curiosity before visiting Project Seabird to see and understand it...I'm happy seeing Karwar closely and can say that my confidence level has increased towards this naval base," Singh said.
Addressing the Indian Navy officers and sailors, he said, with the completion of the project, not only India's defence preparedness will be strengthened, but also the country's trade, economy and the humanitarian assistance that it provides will also get more strength.
"It is said that this will become India's largest naval base, but I have said not only India's, our wish is that this should become Asia's biggest naval base, and I will try to get budget allocation increased if required for this," he added.
Singh, accompanied by Chief of Naval Staff, Admiral Karambir Singh, undertook an aerial survey of project area and sites, prior to arriving at INS Kadamba Helipad here.
Stating that during the aerial survey of the project, he could see its future, the Defence Minister said, the future of this naval base is "very bright" and the credit for this has to go to the officers and sailors.
"I have also seen the country's first sealift facility, which will improve our maintenance compared to earlier...so I say this naval base is different from the rest," he said.
Noting that India's strength is growing, Singh said, "..India is now among the five major naval powers in the world, we should aim to be among the top three in the next ten to twelve years."
Indian Navy's contribution in maritime and national security is immense, Singh said.
Not only him, but those with the knowledge on security-related issues are of the view that the Navy will play the most important role in the country's security in the future, he added.
Citing the role played by the navy in the past like the liberation of Goa, and India-Pakistan wars, among others, he said there is Navy's role in improving diplomatic relations and recalled the service rendered by it during the COVID pandemic, which has gained appreciation from other countries too.
"Some countries have come close to us, it is because of you," he said, adding, in this way not only as a defence power, the Navy has also safeguarded the country's global interests.
Highlighting the Navy's role in improving trade and cultural ties with other countries, Singh said, "we have 7,500 km of coastline, 1,100 islands, 25 lakh sq km of exclusive economic zones that can play an important role in the development of the world with the help of our capabilities and capacity."
"Sometimes we forget our own capability in front of other global powers.....with courage we can achieve things, victory can be achieved during a fight with courage and not only because of ammunition."
"You might have seen, we have proved it (victory with courage).. this time, I don't want to take any names, you are aware of it, it is in our defence forces," he said.
Noting the Navy's role in maintaining peace and development in the Indian Ocean Region, and in realising the PM's vision of 'SAGAR' (Security & Growth for All in Region), Singh said, at the time when economic and political relations are fast changing, there is a need for Indian Navy to be strengthened further.
"We have to be prepared for the future, we will have to improve our capacity and capability," he said.
There are no shortcomings in mutual coordination between the country's tri-services, "but we have thought about further improving it." Singh said that the Defence Ministry is also taking up certain reforms.
Speaking on self-reliance in the defence sector, he said 64 per cent of the capital procurement budget will only be for domestic procurement and several changes have been made in the defence acquisition procedure.
As many as 46 out of 48 ships and submarines being procured are being built in Indian shipyards, Singh said, adding, Indigenous Aircraft Carrier, INS Vikrant will be completed soon and is likely to be commissioned as the country completes 75 years of Independence.
The Defence Minister is also scheduled to visit Kochi to review the progress of construction of the indigenous Aircraft Carrier (IAC) there.
Visited Karwar Naval Base today to review the progress of ongoing infrastructure development under ‘Project Seabird’. I am confident that after the completion of this project, the Karwar Naval Base would become Asia's largest and most efficient Naval base. pic.twitter.com/8z6QcST4QM
— Rajnath Singh (@rajnathsingh) June 24, 2021
