Scheme addresses short-term liquidity issues
Thirty-five proposals, seeking financing up to Rs.13,776 crore, are in process of approvals under the Rs,30,000 crore Special Liquidity Scheme for NBFCs and HFCs is being implemented from 1 July 2020.
As on 23 July 2020, five proposals involving an amount of Rs.3,090 crore have already been sanctioned, said the Finance Ministry on 24 July 2020.
The scheme is a follow up of one of the announcements under the Aatma Nirbhar Bharat package made by the Finance Minister Nirmala Sitharaman on 13 May 2020.
The Scheme has been launched to improve the liquidity position of #NBFCs and #HFCs through a Special Purpose Vehicle (SPV) to avoid any potential systemic risks to the financial sector.
The Scheme, which has received a very positive response, is being implemented by SLS Trust, the SPV set up by @SBI Capital Markets Limited (SBICAP).
Any NBFC including Microfinance Institutions registered with RBI under the Reserve Bank of India Act, 1934 (excluding those registered as Core Investment Companies) and any HFC registered with the National Housing Bank (NHB) under the National Housing Bank Act, 1987 which is complying with certain specified conditions are eligible to raise funding from this facility.
The Scheme will remain open for three months for making subscriptions by the Trust.
The Scheme permits both primary and secondary market purchases of debt and seeks to address the short-term liquidity issues of NBFCs and HFCs. Therefore, those market participants who are looking to exit their standard investments with a residual maturity of 90 days may also approach the SLS Trust. #finance #microfinance #schemes @RBI /fiinews.com
