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Term Liquidity Facility of Rs500bn to Ease Access to Emergency Health Services: 

Under the scheme, banks can provide fresh lending support to a wide range of entities including vaccine manufacturers; importers/suppliers of vaccines and priority medical devices; hospitals/dispensaries; pathology labs; manufacturers and suppliers of oxygen and ventilators; importers of vaccines and COVID related drugs; logistics firms and also patients for treatment. These loans will continue to be classified under priority sector till repayment or maturity, whichever is earlier.

Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs):  

It has been decided to conduct special three-year long-term repo operations (SLTRO) of ₹100bn at repo rate for the SFBs, to be deployed for fresh lending of up to ₹10 lakh per borrower. This facility will be available till October 31, 2021. Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as Priority Sector Lending.

Resolution Framework 2.0 for COVID Related Stressed Assets of Individuals, Small Businesses and MSMEs: 

Borrowers i.e. individuals and small businesses and MSMEs having aggregate exposure of upto ₹25 crore and who have not availed restructuring under any of the earlier restructuring frameworks (including under the Resolution Framework 1.0 dated August 6, 2020), and who were classified as ‘Standard’ as on March 31, 2021 shall be eligible to be considered under Resolution Framework 2.0. Restructuring under the proposed framework may be invoked up to September 30, 2021 and shall have to be implemented within 90 days after invocation.

Utilisation of Floating Provisions and Countercyclical Provisioning Buffer: 

The banks are being allowed to utilise 100 per cent of floating provisions/counter-cyclical provisioning buffer held by them as on December 31, 2020 for making specific provisions for non- performing assets with prior approval of their Boards. Such utilisation is permitted with immediate effect and up to March 31, 2022.

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