Economy

NHB, NABARD get special liquidity facility of ₹5,000 crore each

Our Bureau Mumbai | Updated on August 06, 2020 Published on August 06, 2020

RBI move aimed at augmenting fund flow to HFCs, NBFCs amid Covid-19 crisis

The Reserve Bank of India (RBI) on Thursday announced additional special liquidity facility of ₹5,000 crore each for the National Housing Bank (NHB) and the National Bank for Agriculture and Rural Development (NABARD) at the policy repo rate of 4 per cent.

 

In the case of NHB, the central bank said the ₹5,000 crore facility is being provided to shield the housing sector from liquidity disruptions and augment the flow of finance to the sector through housing finance companies (HFCs)

The RBI excepts the ₹5,000-crore facility for NABARD to ameliorate the stress being faced by smaller non-bank finance companies (NBFCs) and micro-finance institutions in obtaining access to liquidity.

 

The RBI had earlier announced refinancing of ₹25,000 crore to NABARD and ₹10,000 crore to NHB on April 17 as they were facing difficulties in raising resources in view of tightening financial conditions amid the pandemic.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on August 06, 2020
This article is closed for comments.
Please Email the Editor