Money & Banking

‘Allow partial functioning of RBI-registered NBFCs’

Our Bureau. Mumbai | Updated on April 05, 2021

The Finance Industry Development Council (FIDC) has written to the Maharashtra government seeking partial functioning of RBI-registered non-banking financial companies during the current preventive measures being taken to check the rapid spread of Covid-19 in the State.

“It is necessary that essential staff may be required to be physically present in the branch offices and they cannot Work from Home for the collections, depositing cash in banks,” said FIDC in a representation to Sitaram Kunte, Chief Secretary, Government of Maharashtra.

Noting that the State government has exempted banks from the closure of offices in the Break the Chain order, FIDC said that operations of NBFCs are also similar to those of banks.

“Similarly, insurance companies, stock markets and its operators, mutual funds are treated at par with banks,” said FIDC, adding that NBFCs are the only part of the financial sector that has been left out.

“If at least 30 per cent of our staff are permitted to be operative on rotation basis, we can cater to the rising financial requirements of a larger segment of lower and middle income customers during this challenging time,” the FIDC further said.

Noting that a similar exemption was provided to NBFCs during the lockdown last year, FIDC said: “We make an appeal to exempt RBI-registered NBFCs under Clause 5 (a) of the said order date on April 4 and issue necessary advisory that the essential operations of NBFCs in Maharashtra are continued on par with banking operation and to facilitate the essential staff to provide the essential services to our stakeholders.”

Published on April 05, 2021

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