Speed Post News Network
New Delhi : The Reserve Bank of India (RBI) on August 6, 2020, announced a set of additional developmental and regulatory policy measures 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.
RBI Governor 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”. To mitigate impact of COVID-19 on ordinary citizens, the 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, according to a PIB release. This relaxation of the limit, up from current limit of 75%, shall be available till March 31, 2021.
A special liquidity facility of Rs 5,000 crore is being provided to National Housing Bank to improve fund flow to the housing sector. A Rs 5,000 crore fund has been earmarked for NABARD too to improve fund availability for Non-Banking Finance Companies and Micro Finance Institutions. To address the heightened debt burdens being faced by borrowing firms, the RBI has decided to enable lenders to implement a debt resolution plan for eligible corporate debts as well as personal loans.