Banks will be able to use 100% of temporary provisions for NPAs


Mumbai. The Reserve Bank of India (RBI) on Wednesday gave huge relief to banks, saying that banks can now use 100 per cent of the temporary provisions they have till December 31, 2020 to make specific provisions for non-performing assets (NPAs). This step has been taken to reduce the pandemic related stress on banks and to enable capital protection. Such use is permitted until 31 March 2022.

Reserve Bank of India Governor Shaktikanta Das on Wednesday announced several measures to support the country’s fight against the second wave of Kovid-19 transition.

Also read this news: Hawkers, transporters and journalists will be given priority in first dose of vaccine: CM Mamata Banerjee

Term liquidity facility of Rs 50,000 crore has been provided with a tenure of up to 3 years at the repo rate to speed up Kovid-related health infrastructure and services while making access to emergency health services easier.

At the same time, the maximum number of overdraft days for state governments has been increased from 36 to 50 days in a quarter.

–IANS

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