Page 212 - NHB AR 2020-21-3 complete- Print (1)
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• A temporary reduction of the Liquidity Coverage Ratio (LCR) and restriction on banks
from making dividend pay-outs.
• A standstill on asset classifications during the loan moratorium period with 10 percent
provisioning requirement, and an extension of the time for resolution timeline of large
accounts under default by 90 days.
• Furthermore, State’s Ways and Means Advance (WMA) limits have been increased by 60
percent and extended till March 2021.
• The RBI asked financial institutions to assess the impact on their asset quality, liquidity, and
other parameters from the COVID-19 shock and take immediate contingency measures.
• On April 27, 2020, the RBI announced a Special Liquidity Facility for mutual funds (SLF-
MF) and a fixed-rate 90-day repo operation for banks exclusively for meeting the liquidity
requirements of mutual funds, along with regulatory easing for liquidity support availed
under the facility, later (April 30) extended to banks’ own deployed resources; and the
SEBI reduced broker turnover fees and filing fees on offer documents for public issue,
rights issue, and buyback of shares.
• On May 13, 2020, the Government announced measures targeting businesses: (i) a collateral-
free lending program with 100 percent guarantee, (ii) subordinate debt for stressed MSMEs
with partial guarantee, and (iii) Partial Credit Guarantee Scheme for Public Sector Banks
on borrowings of Non-Bank Financial Companies, Housing Finance Companies (HFCs),
and Micro Finance Institutions.
• The Government also announced (i) a Fund of Funds for equity infusion in MSMEs, and
(ii) a special purpose vehicle (SPV) to purchase short-term debt of the eligible Non-Bank
Financial Companies and Housing Finance Companies, fully guaranteed by the government
and managed by a Public Sector Bank.
• On May 22, 2020, the RBI undertook further regulatory easing, including the increase in the
large exposure limit, relaxation of some of the norms for State Government financing, credit
support to the exporters and importers and extension of the tenor of the small business
refinancing facilities.
• On June 4, 2020, the RBI extended the benefit under interest subvention and prompt
repayment incentive schemes for short-term agricultural loans until August 31, 2020.
• On June 12, 2020, the GST Council announced that it would halve the interest rate charged
192 | Annual Report 2020-21
from making dividend pay-outs.
• A standstill on asset classifications during the loan moratorium period with 10 percent
provisioning requirement, and an extension of the time for resolution timeline of large
accounts under default by 90 days.
• Furthermore, State’s Ways and Means Advance (WMA) limits have been increased by 60
percent and extended till March 2021.
• The RBI asked financial institutions to assess the impact on their asset quality, liquidity, and
other parameters from the COVID-19 shock and take immediate contingency measures.
• On April 27, 2020, the RBI announced a Special Liquidity Facility for mutual funds (SLF-
MF) and a fixed-rate 90-day repo operation for banks exclusively for meeting the liquidity
requirements of mutual funds, along with regulatory easing for liquidity support availed
under the facility, later (April 30) extended to banks’ own deployed resources; and the
SEBI reduced broker turnover fees and filing fees on offer documents for public issue,
rights issue, and buyback of shares.
• On May 13, 2020, the Government announced measures targeting businesses: (i) a collateral-
free lending program with 100 percent guarantee, (ii) subordinate debt for stressed MSMEs
with partial guarantee, and (iii) Partial Credit Guarantee Scheme for Public Sector Banks
on borrowings of Non-Bank Financial Companies, Housing Finance Companies (HFCs),
and Micro Finance Institutions.
• The Government also announced (i) a Fund of Funds for equity infusion in MSMEs, and
(ii) a special purpose vehicle (SPV) to purchase short-term debt of the eligible Non-Bank
Financial Companies and Housing Finance Companies, fully guaranteed by the government
and managed by a Public Sector Bank.
• On May 22, 2020, the RBI undertook further regulatory easing, including the increase in the
large exposure limit, relaxation of some of the norms for State Government financing, credit
support to the exporters and importers and extension of the tenor of the small business
refinancing facilities.
• On June 4, 2020, the RBI extended the benefit under interest subvention and prompt
repayment incentive schemes for short-term agricultural loans until August 31, 2020.
• On June 12, 2020, the GST Council announced that it would halve the interest rate charged
192 | Annual Report 2020-21
