NEW DELHI: The Reserve Bank India (RBI) on Monday said the special lending window with CRR exemption will be open from February 14 and incremental loans disbursed under this facility will have CRR exemption for the next five years.
This means that banks will not be needed to make additional cash reserve ratio against any incremental loans disbursed to the targeted segments.
The window opens on February 14 for six months ending July 31, 2020, but the net demand and time liabilities (NDTL) will be calculated as of January 31, 2020, the central bank circular said this evening.
As an additional liquidity measure and also to nudge banks to lend more to the needy segments, the RBI at the last monetary policy announcement said banks, flushed with liquidity, could lend to these segments without making additional provisions without the requirement of parking additional CRR.