Image Source : PTI

Second wave of pandemic has taken grievous toll on India: RBI Governor

Instilling confidence that the economy which has taken a hit due to this pandemic, RBI Governor Shaktikanta Das on Thursday said that, it has started to look up in late-May and early June.

“Second wave of pandemic has taken grievous toll on India. Economic activity was dented in April, but has started to look up in late-May and early June,” Das in Financial Stability Report said.

He said, “Dent on balance sheets, performance of financial institutions much less than projected earlier. Capital, liquidity buffers at financial institutions “reasonably resilient” to withstand future shocks.

ALSO READ: Sitharaman announces economic relief measures worth over Rs 6 lakh cr for Covid-affected sectors

Giving a boost to the Finance Minister Nirmala Sitharaman had on Monday announced Rs 1.5 lakh crore of additional credit for small and medium businesses, more funds for the healthcare sector, loans to tourism agencies and guides, and waiver of visa fee for foreign tourists as part of a package to support the pandemic-hit economy.

Together with previously announced Rs 93,869 crore spending on providing free foodgrains to the poor till November and additional Rs 14,775 crore fertiliser subsidy, the stimulus package — mostly made up of government guarantee to banks and microfinance institutions for loans they extend to Covid-hit sectors — totalled up to Rs 6.29 lakh crore.

ALSO READ: India’s manufacturing sector contracts in June; first time in 11 months: survey

Latest Business News

News Source link