RBI announces setting up of separate liquidity window of Rs 15,000 cr for hospitality
New Delhi: Providing partial relief to the hospitality sector, the Reserve Bank of India today announced setting up of a separate liquidity window of Rs 15,000 crore for the hotels and travel & tourism industry.
"In order to mitigate the adverse impact of the second wave of the pandemic on certain contact-intensive sectors, a separate liquidity window of Rs 15,000 crore is being opened till March 31, 2022 with tenors of up to three years at the repo rate," RBI Governor Shaktikanta Das said while keeping the Repo Rate unchanged after a meeting of the Monetary Policy Committee.
"Under the scheme, banks can provide fresh lending support to hotels and restaurants, travel agents, tour operators and adventure 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," he said.
Through incentive scheme, banks will be allowed to park their surplus liquidity, up to the size of the loan book created under this scheme, with the central bank under the reverse repo window at a rate that will be 25 basis points lower than the Repo Rate. In other words, commercial banks will be able to park their surplus liquidity at 40 basis points higher than the reverse repo rate.