Govt provides Rs 25K cr to financial institutions

>> Wednesday, October 15, 2008

Close on the heels of major liquidity infusions by central banks around the world, the Reserve Bank of India, on Wednesday, has decided to provide Rs 25,000 crores for lending to financial institutions. Out of this Rs 7,500 crores will be provided to commercial banks and Rs 17,500 crores to Nabard.

Announcing the move, Finance Minister P Chidambaram said the governmnet will provide farm loan waiver of Rs 250 billion to banks immediately.

The amount was being issued against the waiver of farm loans worth an estimated Rs 71,000 crore to bailout nearly four million small and marginal farmers across the country, he said.

He said the earlier limit on external commercial borrowings (ECB), which helps the corporate sector to access the financial markets overseas, was also being doubled to $6 billion.

Source: - Economic Times.