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RBI took a big step for small businesses

Cheap loans will also be available for bus operators and salon-beauty parlors

The Reserve Bank has extended a helping hand to the most affected hotels, tourism industry as well as small businesses like bus operators, salons and beauty parlors in the epidemic. Banks will be given a fund of 15 thousand crores for 3 years at repo rate (four percent) interest from RBI. Due to which banks will be able to provide cheap loans to these areas. In the meeting of the Monetary Policy Committee, the RBI has discussed Hotel-Restaurant, Tourism, Aviation Support Services, Travel Agent Tour Operator Airport Ground Handling Services, Adventure Travel Agency, Private Bus Operator, Car Repair Service, Car Rent Service, Spa, Beauty Parlor, Salon, The event-conference organizer has also been given the facility to provide cheap loans.

For this, applications can be made till 31 March 2022. Priority will be given to small and medium enterprises of aspirational districts in distributing 16 thousand crore loans to MSMEs through SIDBI. The benefit of this facility issued at 4% interest can be availed for 1 year from the start of the scheme. RBI said that in future the duration of the scheme can be extended keeping in view the need of the economy and industries.

Along with this, RBI has estimated retail inflation to average 5.1 per cent in the current financial year, which is above its fixed range of 4 per cent. After the MPC meeting, the Governor said, “Retail inflation will remain under control due to better monsoon and improvement in supply chain.”
However, due to increase in the prices of other commodities including crude, steel, there will be inflationary pressure throughout the year. It is estimated to be 5.2 percent in the first quarter, 5.4 percent in the second, 4.7 percent in the third and 5.3 percent in the fourth quarter. Retail inflation stood at 4.3 per cent in April due to falling food prices.