RBI provides additional monetary support to housing, rural and priority sectors You can now borrow up to 90% of value pledged against Gold...
RBI provides additional monetary support to housing, rural and priority sectors
You can now borrow up to 90% of value pledged against Gold and Jewellery
The Reserve Bank of India has announced a set of additional developmental and regulatory policy measures today to improve flow of money and provide further support to the financial system, in the wake of rising COVID-19 infections in India and the world. The Governor Shri Shaktikanta Das stated that the measures will ease the financial stress caused by disruptions due to “the worst peacetime health and economic crisis of the last 100 years”. Here is a summary of the announcements.
- You can now borrow more against Gold and Jewellery
To mitigate impact of COVID-19 on ordinary citizens, RBI has decided to allow loans for non-agricultural purposes, against gold and jewellery, to be granted up to 90 per cent of the pledged value of gold ornaments and jewellery. This relaxation of the limit, up from current limit of 75%, shall be available till March 31, 2021.
- Sharper Focus on Inclusive Development, through greater Priority Sector Lending
Banks will now be incentivized to address regional disparities in flow of priority sector lending. The weightage given for fresh credit given to priority sectors will be adjusted based on current credit flow of districts. Start-ups too will now get this type of credit support; green energy sectors will now get higher lending under the framework.
- Additional credit support for housing and rural sectors
A special liquidity facility of ₹ 5,000 crore is being provided to National Housing Bank, to improve fund flow to the housing sector. A ₹ 5,000 crore fund has been earmarked for NABARD too, to improve fund availability for Non-Banking Finance Companies and Micro Finance Institutions.
RO No 13073/51
RO No 13073/51
RO No 13073/51
RO No 13073/51
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