RBI Measures to support Small Businesses & Unorganized Sectors

Shaktikanta Das reappointed RBI governor for three more years Re-appointed as the Governor of Reserve Bank of India (RBI) for three more years. The reappointment will be effective from December 10 or till further orders, whichever is earlier. "The Appointments Committee of the Cabinet has approved the re-appointment of Shaktikanta Das as Governor of Reserve Bank of India for a further period of three years with effect from December 10, 2021 or until further orders, whichever is earlier," an official statement said. Permission has been granted."

RBI today, on 08.10.2021, has announced various measures to support small businesses and unorganized sectors. These measures will be helpful in remote areas with little or no internet connectivity, will expand reach of digital payments, will provide further impetus to fintech ecosystem and ensure continuous innovation in fintech.

These measures includes:

  1. Increasing IMPS (Immediate Payment Service Transaction) per transaction limit from Rs. 2 lakhs to Rs. 5 lakhs, to enhance customer convenience, enabling instant domestic fund transfer 24 x 7.
  2. Extension of Rs. 10,000 crore On-Tap Special Liquidity Long Term Repo Operations (SLTRO) for small finance banks, till December 31, 2021
  3. Introduction of pan-India Framework for Retail Digital Payment Solutions in offline mode, for areas with little or scarce internet access
  4. IMPS Transaction Limit to be increased from Rs. 2 Lakh to Rs. 5 Lakh
  5. Geo-tagging of all existing and new payment system touchpoints, to expand reach of payments acceptance infrastructure
  6. New fraud prevention cohort in RBI’s Regulatory sandbox, to provide further impetus to fintech ecosystem
  7. Continuation of Enhanced Ways and Means Advance Limits and liberalized overdraft measures for states, till March 31, 2022
  8. Continuation of classifying bank lending to NBFCs as priority sector lending, till March 31, 2022
  9. Internal Ombudsman Scheme for NBFCs with higher customer interface, to strengthen internal grievance redress mechanism

As a relief to the States and UTs, RBI has also extended the interim enhancement of Ways and Means Advance (WMA) limits of Rs. 51,560 Crore up to March 31, 2022. “This is to help states/UTs manage cashflow amidst continued uncertainties on account of the pandemic,” he remarked.

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  • Source: Press Release ID: 1762064

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Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

CS LALIT RAJPUT

He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.

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