RBI has opened a pipeline of funds for startups, home buyers and green power producers too
- The Reserve Bank of India has announced that it has brought in startups and renewable energy into the purview of Priority Sector Lending.
- For loans with gold ornaments as pledges, the permissible loan to value ratio (LTV) has been increased to 90%, from the earlier 75%.
Categories that have been under PSL are agriculture, MSMEs, education, housing, social infrastructure among others. This move will now benefit startups, who can borrow from banks with much more ease and open up another avenue for funds. The steps taken by the RBI will help the under stress companies, who have been hit by the coronavirus pandemic.
Meanwhile, for renewable energy sectors including solar power and compressed bio-gas plants, which already fell under the PSL category, the cap has been increased for borrowing.
The RBI has also amended the priority sector guidelines to do away with regional disparity. Das said that while higher weightage will be assigned for incremental priority sector credit in the identified districts having lower credit flow, a lower weightage would be assigned in identified districts where the credit flow is comparatively higher.
But that’s not alone, the RBI governor also gave a
‘Watchful’ RBI leaves repo rate unchanged to keep inflation in check
Manappuram and Muthoot Finance shares jump nearly 5% after RBI increased the loan to value ratio on gold to 90%
- Bio-secure bubbles – Here's how IPL players will be staying safe during the pandemic
- INTERVIEW: Chennai-based CAMS’ 30-year journey to an IPO
- Amazon pumps in money into MORE to take on the heavyweights Reliance Retail and DMart
- 30 COVID vaccine candidates being developed: Health Ministry
- INTERVIEW: Paytm trains its guns on Google while the payments app is back in Play Store