The Reserve Bank of India (RBI) proposed to extend the term-liquidity facility of ₹50,000 crore offered to emergency health services by three months till June 30.
• Last year in May, RBI had announced an on-tap liquidity window of ₹50,000 crore, at
the repo rate with tenors of up to three years, to boost provision of immediate liquidity for ramping up COVID-19-related healthcare infrastructure and services in the country.
• Banks were incentivised for quick delivery of credit under the scheme through extension of priority-sector classification to such lending up to March 31, 2022.
• In view of the response to the scheme, it is now proposed to extend this window up to June 30, 2022 from March 31, 2022 as announced earlier.
• Under the scheme, banks were expected to create a COVID-19 loan book.