Money & Banking

Banks sanction ₹20,000 cr to NBFCs

Our Bureau Mumbai | Updated on November 12, 2019 Published on November 12, 2019

Banks have so far supported non-banking finance companies, sanctioning ₹20,000 crore under the partial guarantee scheme for purchase of asset pools. The scheme, whereby PSBs purchase asset pools from NBFCs, was announced in the Union Budget. This was aimed at alleviating liquidity issues being faced by NBFCs after the IL&FS debt default crisis last year. The scheme has been capped at ₹1-lakh crore and isopen for up to six months. “The guarantee is being extended. Some formalities are being completed. Individual cases go to the government. So, that is taking a bit of time,” said Rajiv Kumar, Finance Secretary, Ministry of Finance.

Published on November 12, 2019
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