NBFCs expect continued liquidity stimulus in Budget 2021
To mitigate the impact of COVID-19 on NBFC sector, the government and Reserve Bank of India (RBI) have announced various schemes such as the Partial Credit Guarantee Scheme (PCGS), Targeted Long-Term Repo Operations (TLTRO) and Special Liquidity Scheme (SLS)
PTI | January 21, 2021 | Updated 09:24 IST
Cyril Amarchand Mangaldas partner L Viswanathan said in the recent years, NBFCs that are important intermediaries of credit have faced concerns of liquidity, governance and solvency and it is hoped that the Budget will ease some of the pressures
Non-banking finance companies expect the government to provide continued liquidity support by encouraging banks to lend more to the sector, setting up a permanent refinance window and relaxing external commercial borrowing norms in the upcoming Budget. The government will present the Budget for fiscal 2021-22 on February 1, 2021.
To mitigate the impact of COVID-19 on NBFC sector, the government and Reserve Bank of India (RBI) have announced various schemes such as the Partial Credit Guarantee Scheme (PCGS), Targeted Long-Term Repo Operations (TLTRO) and Special Liquidity Scheme (SLS).
Read more about NBFCs seek continued liquidity support in upcoming Union Budget on Business Standard. Non-banking finance companies expect the government to provide continued liquidity support by encouraging banks to lend more to the sector
Pre-Budget meeting: NBFCs seek easier credit flow, TLTRO benefits financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.
Non-banking financial companies (NBFCs) have sought relaxation in eligibility to recover loans under the SARFAESI Act from the government. In the pre-Budget meeting with Finance Minister Nirmala Sitharaman, the Finance Industry Development Council, a representative body for NBFCs, has suggested lowering the minimum ticket size of Rs 50 lakh for loans eligible to be recovered by NBFCs under SARFAESI Act. The request has been made considering the recovery of small-ticket loans given to MSMEs, and proposes to bring parity in recovery of soured loans by banks and non-bank lenders, said Raman Aggarwal, co-chairman of the industry body. The finance minister, in her Budget 2020-21, had proposed lowering the eligibility limit for debt recovery under the SARFAESI Act from asset size of Rs 500 crore to asset size of Rs 100 crore or loan size from Rs 1 crore to Rs 50 lakh. The NBFCs have also asked the government to expand the Partial Credit Guarantee Scheme 2.0 to include bank lending t