RBI on Wednesday announced provision of immediate liquidity for ramping up COVID related healthcare infrastructure and services in the country, an on-tap liquidity window of ₹50,000 crore with tenors of up to three years at the repo rate is being opened till March 31, 2022.
Wide range of entities including vaccine manufactures; importers/suppliers of vaccines and priority medical devices; hospitals/dispensaries; pathology labs; manufactures and suppliers of oxygen and ventilators; importers of vaccines and COVID related drugs; logistics firms and also patients for treatment are eligible to borrow under the scheme.Banks are incentivized for for quick delivery of credit under the scheme through extension of priority sector classification to such lending up to March 31, 2022.The loans granted by banks to health care infrastructure and services created under COVID Loan book scheme will continue to be classified under priority sector till repayment or maturity, whichever is earlier.
Banks are provided with additional incentive as they will be eligible to park their surplus liquidity up to the size of the COVID loan book with the RBI under the reverse repo window at a rate which is 25 bps lower than the repo rate or, termed in a different way, 40 bps higher than the reverse repo rate.
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