RBI generates a liquidity window of ₹15,000 crores to help restaurant and tourism industry

Under the plan, banks can help contact-intensive sectors like hotels and restaurants, tour operators, travel agents and other facilities. Banks will also assist the aviation ancillary services and other services like event organizers, spa clinics, beauty parlors and salons.

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The restaurant and tourism industry in India has hit adversely due to the pandemic. The second wave of the virus has literally threatened to hinder the country's economic recovery. Now, to overcome the hurdle and revive the sectors including tourism, restaurant and beauty parlours, the central bank announced a ₹15,000 crore liquidity window. 

In a statement Reserve Bank of India governor, Shaktikanta Das said that to lessen the adverse impact of the second wave of the pandemic on certain contact-intensive sectors, a separate liquidity window of Rs15,000 crore is being opened till March 31, 2022, with tenors of up to three years at the repo rate.

Under the plan, banks can help contact-intensive sectors like hotels and restaurants, tour operators, travel agents and other facilities. Banks will also assist the aviation ancillary services and other services like event organizers, spa clinics, beauty parlours and salons.

RBI’s measures will come as a sigh of relief for the small businesses. It will incentivise banks by enabling them to give excess liquidity, equivalent to loans. This announcement has come after RBI announced a liquidity window of ₹50,000 crores for helping healthcare infrastructure.

Apart from this, the RBI is keeping rates constant at record lows with the lending rate at 4%, and the borrowing rate at 3.35%.