Banks to lend ₹15,000 crore to hotels, restaurants, travel agents, SPA owners

To mitigate the adverse impact of the second wave of the pandemic on certain contact-intensive sectors, the Reserve Bank of India (RBI) in additional measure has opened a separate On-tap Liquidity Window of ₹15,000 crores till March 31, 2022 with tenors of up to three years at the repo rate.

Under the scheme, banks can provide fresh lending support to hotels and restaurants; tourism – travel agents, tour operators and adventure/heritage facilities; aviation ancillary services – ground handling and supply chain; and other services that include private bus operators, car repair services, rent-a-car service providers, event/conference organizers, spa clinics, and beauty parlours/saloons.

By way of an incentive, banks will be permitted to park their surplus liquidity up to the size of the loan book created under this scheme with the Reserve Bank 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.

Source: Read Full Article