?30,000-Cr Liquidity Support for NBFCs Falls Short
The ?30,000-crore Special Liquidity Scheme – rolled out as part of the Aatma Nirbar Bharat package – to support NBFCs and Housing Finance Companies has fallen short of the expected outcome. Of the ?30,000 crore that was sought to be allocated for the scheme, only ?7,227 crore has been disbursed a
Published -
Oct 6, 2020 5:27 AM
The ?30,000-crore Special Liquidity Scheme – rolled out as part of the Aatma Nirbar Bharat package – to support NBFCs and Housing Finance Companies has fallen short of the expected outcome. Of the ?30,000 crore that was sought to be allocated for the scheme, only ?7,227 crore has been disbursed at the end of the scheme on September 30. As of September 30, 39 proposals, involving ?11,120 crore, was approved. Of this sanctioned amount, ?7,227 crore has been disbursed, whereas ?182 crore will not be availed. The remaining sanction of ?3,707 crore has lapsed, according to official data. The scheme only saw one-fourth of the intended support amount utilised by NBFCs and HFCs. It is widely perceived that a majority of the medium and small NBFCs that were looking for liquidity support to do further lending did not get the requisite support coming their way due to the conditions of the scheme. The liquidity support largely landed at the doorsteps of large NBFCs, while most of the smaller ones did not benefit. Although the intent of the government was good, the way this scheme was structured and implemented, is not meeting the needs of the larger NBFC universe on the ground.
Tags : News/Views Latest News