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With reference to the liquidity window for healthcare, consider the following statements:
1. The Reserve Bank of India (RBI) proposed to extend the term-liquidity facility of ₹10,000 crore offered to emergency health services by three months till June 30.
2. Under the scheme, banks were expected to create a COVID-19 loan book.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
With reference to the liquidity window for healthcare, consider the fo...
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.
  • Hence only statement 2 is correct.
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With reference to the liquidity window for healthcare, consider the following statements:1. The Reserve Bank of India (RBI) proposed to extend the term-liquidity facility of 10,000 crore offered to emergency health services by three months till June 30.2. Under the scheme, banks were expected to create a COVID-19 loan book.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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