Covid-19 loans: Banks using their own resources to get the benefit

Earlier, option of earning 40 bps extra was for banks using RBI's Rs 50,000-cr window

Banks using their own resources to lend for boosting Covid-19 health infrastructure will get to park surplus funds with the RBI and earn 40 basis points (bps) extra over the reverse repo rate, the central bank said on Friday.
 
Banks have to create a ‘Covid loan book’ under the scheme and the extra return can be earned on surplus funds to the extent of disbursed loans.
 
These loans will be classified under priority sector lending till repayment or maturity, whichever is earlier. Priority sector loans are exempted from maintaining cash reserve or statutory liquidity ratios, and so