RBI Announces Rs 16,000 Crore Special Liquidity Facility For SIDBI To Support Small And Medium Businesses

RBI Announces Rs 16,000 Crore Special Liquidity Facility For SIDBI To Support Small And Medium Businesses

by IANS - Friday, June 4, 2021 01:21 PM IST
RBI Announces Rs 16,000 Crore Special Liquidity Facility For SIDBI To Support Small And Medium BusinessesRBI headquarters in Mumbai. (INDRANIL MUKHERJEE/AFP/Getty Images)

In a move to support small and medium businesses in their credit requirements, the Reserve Bank of India (RBI) has announced a special liquidity facility of Rs 16,000 crore for Small Industries Development Bank of India(SIDBI).

This comes over and above the Rs 15,000 crore liquidity support announced in April.

This facility is expected support the MSMEs amid the current Covid crisis and the lockdowns across states.

"In order to meet MSMEs' short- and medium-term credit needs to kick start the investment cycle with additional focus on smaller MSMEs and businesses including those in credit deficient and aspirational districts, it has been decided to provide a further special liquidity facility of Rs 16,000 crore to SIDBI," said Statement on Developmental and Regulatory Policies.

It noted that the facility would be extended for on-lending and refinancing through novel models and structures including double intermediation, pooled bond, loan issuances among others.

The facility will be available at the prevailing policy repo rate for a period of up to one year. RBI said that it may consider further extension of the facility depending on its usage.

On 7 April 2021, the central bank had extended fresh support of Rs 50,000 crore to All India Financial Institutions (AIFIs) for new lending in 2021-22, in a bid to nurture the growth impulses of the economy.

It included a special liquidity facility of Rs 25,000 crore to National Bank for Agriculture and Rural Development (NABARD), Rs 10,000 crore to the National Housing Bank (NHB) and liquidity facility worth Rs 15,000 crore to SIDBI.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)

Join our Telegram channel - no spam or links, only crisp analysis.
Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.
Advertisement

Latest Articles

    Artboard 4Created with Sketch.