Money & Banking

Need refinance mechanism to support NBFCs: FIDC to FM

KR Srivats New Delhi | Updated on August 09, 2019 Published on August 09, 2019

The Finance Industry Development Council, a representative body of NBFCs, on Friday urged Finance Minister Nirmala Sitharaman to put in place a refinance mechanism to support NBFCs during troubled times.

This was conveyed to Sitharaman during the specially-convened meeting by the Finance Minister with representatives of financial intermediaries and capital markets here at the North Block.

“We requested for a refinance mechanism on the lines that National Housing Bank provides for housing finance companies to be provided for large NBFCs. For smaller NBFCs, we have suggested that MUDRA should do refinance,” Raman Aggarwal. Chairman, FIDC, told BusinessLine.

NBFCs have, in recent times, struggled with liquidity problem, with some of them even facing a blowout due to asset-liability mismatches.

Friday’s meeting also saw discussions around the Budget proposal to provide partial guarantee to banks for them to lend to NBFCs, it is learnt. The meeting was also attended by S Viji, Chairman, Sundaram Finance.

Published on August 09, 2019
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