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.