RBI declaration: Banks will create COVID loan book… how will it work… What will the common man benefit from this?
RBI Press Conference: After the second wave of Corona crisis, RBI Governor Shaktikanta Das has announced to take big steps regarding the economy. Let's know what will happen to the common man
In the midst of the Corona crisis, the RBI Governor has made a big announcement to save the country's economy and provide relief to the common people. In the press conference, he told that the economy is in recovery mode. But the second wave of Corona may raise concerns in the economy. That is why RBI has asked banks to make Covid loan book. Banks will get money at the repo rate for 3 years. If put in easy words, they will get money at 4 percent interest rate. On this, experts say that in such a situation, the small businessman will get a big benefit. They will get money at cheaper rates.
What is the bank's COVID loan book
Banks will create a Covid loan book in their balance sheet. Banks can deposit the same amount with their Covid book with the Reserve Bank. In return, banks will get 0.40 per cent more interest than the repo rate.
If put in easy words, banks will take 4 percent interest rate money from RBI. After this, we will give small businessmen at cheaper rates. If the money left with them, they can get 0.40 percent more by giving it back to the RBI.
Small businessmen will get a big help from this
Experts say that this step will give big relief to small traders. Last year in the Corona crisis, it was seen that small businessmen had lost their working expenses. In such a situation, he was not able to give salary as well. That is why the bankers asked the RBI to take steps on this.
What will be the impact on common customers
Experts say that it will not directly affect the general customers. But if the companies do not have any problem of working expenses, then their business will continue. Therefore, there will be no crisis on jobs.
Another big announcement for small businessmen
Micro finance companies have been put in the Priority Sector Lending (PSL). This means that they will now easily get loans at cheaper rates. Apart from this, the RBI has also given 10 thousand crore rupees to small finance banks and small companies under special windows. So that small businessmen can get loan easily.