Banks will now lend to COVID-19 patients who need money for treatment

The governor announced that, in order to strengthen the health infrastructure linked to COVID, a source liquidity window of Rs 50,000 crore with a duration of up to 3 years at the repo rate has been opened until as of March 31, 2022.

COVID-19 patients can now find some respite after the announcements by Reserve Bank of India Governor Shaktikanta Das on Wednesday. Apex Bank, in a bid to save lives and livelihoods, has pushed banks to lend to coronavirus patients who need money for treatment. This will prove to be a relief as it will help counter the huge bills that patients and their families have repeatedly said they have to pay.

This is part of a Rs 50,000 loan program that the RBI announced today. The governor announced that in order to strengthen the health infrastructure linked to COVID, a window of liquidity at the source of Rs 50,000 crore with a duration of up to 3 years at the repo rate was opened until March 31, 2022.

“Banks can make these loans to borrowers directly or through intermediary financial entities regulated by the RBI. Banks are expected to create a COVID loan portfolio as part of the program. As an added incentive, these banks will be eligible to park their excess liquidity. to the size of the COVID loan portfolio with the RBI under the reverse repurchase window at a rate 25 basis points lower than the repo rate or, in other words, 40 basis points higher than the rate reverse repurchase agreement, ”the governor said.

Banks will be able to support entities including vaccine manufacturers, medical facilities, hospitals as well as patients under the program. This loan will be classified by priority sector until repayment or maturity. The window for such loans will remain open until March 31, 2022, the governor said.

“Under this program, banks can provide new loan support to a wide range of entities, including vaccine manufacturers; importers / suppliers of priority vaccines and medical devices; hospitals / clinics; pathology laboratories; oxygen and ventilator manufacturers and suppliers; importers of COVID-related vaccines and drugs; logistics companies and also patients for treatment, ”said the governor.

Read also: Big boost for vaccine producers, pharma players! RBI releases cash of Rs 50,000 cr for emergency health care

Also read: RBI Governor Speech Live Updates: Banks will be urged to lend quickly amid second wave of Covid

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