Economy slowdown: FIDC urges FM to convene meeting with NBFC sector

K.R.Srivats New Delhi | Updated on August 06, 2019 Published on August 06, 2019

With the Centre learnt to be readying up a comprehensive package to address sectoral woes, the Finance Industry Development Council (FIDC) has urged the Finance Minister Nirmala Sitharaman to convene a meeting with NBFC sector as part of her current engagement with important stakeholders of the economy.

Sitharaman has kicked off a series of meetings to better understand the sectoral issues and frame an appropriate policy response.

The first round of such meetings was held with banks on Monday. This is being followed up with meetings with representatives of MSME sector and automobiles in the subsequent days.

FIDC—which is a representative body of NBFCs—has in a letter written to Sitharaman said that it is now important to ensure proper implementation of the measures announced in the recent budget. It is also equally important to take steps to minimise the risk of the current liquidity crisis occurring again in the future.

FIDC Chairman Raman Aggarwal in the letter, had stressed the need to incentivise banks to lend more to NBFCs; develop funding sources outside the banking system; create refinance window for NBFCs; allow NBFCs to issue secured debentures “on Tap” and create a platform for regular dialogue between Finance Ministry and the NBFC sector.

It may be recalled that the recent budget had among several steps nudged banks to lend more to NBFCs without getting risk averse.

Published on August 06, 2019
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