CURRENT AFFAIRS

2021

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

What amount of liquidity support has been announced by the RBI for the small finance banks under a special long-term repo operations to lend to MFIs amid COVID-19 crises?

A	Rs 12, 000 crore
B	Rs 20, 000 crore
C	Rs 10, 000 crore
D	Rs 15, 000 crore

Explanation:

Detailed explanation-1: -On June 4, 2021, it was decided to open a separate liquidity window of ₹15, 000 crore at the repo rate with tenors of up to three years available till March 31, 2022 for certain contact-intensive sectors.

Detailed explanation-2: -With a view to easing liquidity pressures on MFs, it has been decided to open a special liquidity facility for mutual funds of ₹ 50, 000 crore. 3. Under the SLF-MF, the RBI shall conduct repo operations of 90 days tenor at the fixed repo rate.

Detailed explanation-3: -Repo rate refers to the rate at which commercial banks borrow money by selling their securities to the Central Bank of our country i.e. Reserve Bank of India (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures. It is one of the main tools of RBI to keep inflation under control.

Detailed explanation-4: -The Reserve Bank of India (RBI) on Thursday proposed to extend the term-liquidity facility of Rs 50, 000 crore offered to emergency health services by three months till June 30, 2022.

There is 1 question to complete.