The central bank unveils liquidity facility of ₹50,000 crore for access to emergency health services, and ₹10,000 crore for small finance banks’ on-lending, among a slew of measures to fight Covid-19.
With the RBI bringing startups under the ambit of priority sector lending norms, this is the right time for banks to forge alliances in the ecosystem.
The 35 basis point repo rate cut is not the first unconventional rate action from the central bank as two repo rate actions in March 2003 saw a 40 and 10 basis points reduction in a matter of 13 days.
The central bank announces several measures along with the rate hike, including increasing the limit for home loans, to qualify for “priority sector lending”.
