The Reserve Bank of India (RBI) by way of a notification dated 04.06.2021, set out following developmental and regulatory policies in the following areas:
1) Liquidity Management & Support to Targeted Sectors It has been decided to open a separate on-tap liquidity window of Rs.15,000 crore with tenors up to 3 years at the repo rate till March 31,2022 for certain contact-intensive sectors like hotels, restaurants, tourism, car repair services
etc.
The RBI extended fresh support of Rs.50,000 crore on 07.04.2021 to All India Financial Institutions (AIFIs) for new lending in 2021-2022.
2) Regulation and Supervision
The Resolution Framework 2.0 announced by RBI stipulates a maximum aggregate exposure of Rs.25 crore for considering resolution of Covid-19 relates issues of MSMEs, small businesses etc.
It is decided to enhance the exposure threshold under the Resolution Framework 2.0 to Rs.50 crore.
3) Financial Markets It is decided to permit Authorized Dealer Banks to place margins on behalf of the Foreign Portfolio Investor (FPI) clients for their transactions in Government Securities within the credit risk management framework of banks. It is also decided that all issuers of Certificate of Deposit (CDs) will be permitted to buy back their CDs before maturity.
4) Payment Systems
It is proposed to make National Automated Clearing House (NACH, a bulk payment system operated by NPCI), available on all days of the week throughout the year, effective from 01.08.2021.
