Reserve Bank of India (RBI) has allowed certain individual and small borrowers more time to repay debt and allowed banks to give priority loans to vaccine makers, hospitals and COVID-related health infrastructure as it announced support measures to cushion the pandemic's blow to the economy.

MSMES (Micro, Small & Medium Enterprises), which have been hit hard by the second wave of Covid, have said that the RBI’s steps to ensure liquidity and provide support are not enough. According to them, measures such as revisiting classification of bad loans and clearing pending dues from government agencies are also required.

RBI allowed re-opening of one-time restructuring for individuals and MSMEs till September 30. In cases where individual borrowers and MSMEs have availed restructuring of loans that provided a moratorium of less than two years, banks are being allowed to modify the moratorium period up to two years.

The loan recast of up to two years will be available to individuals and small and medium enterprises that did not restructure their loans in 2020 and were classified as standard accounts till March 2021, RBI Governor Shaktikanta Das said.

This facility will be available to borrowers with a total exposure of Rs 25 crore. He also announced a calendar for bond-buying. Just as the economy appeared to be inching back to normalcy, India was hit by a second wave of infections in early April, prompting states and cities to restrict public movements and impose lockdowns, which have hit some businesses hard.

Second threat of Covid-19 will dampen India Inc's recovery: ICRA Report

GDP Forecast: India's GDP may grow at 11 pc in FY22: Asian Dev Bank

Household Economy: Lockdowns push household savings to 22.5 pc of GDP: Reports