RBI was timely measure with an aim to provide strong support to NBFC sector: Rajesh Sharma, MD, Capri Global Capital

Quote from Mr. Rajesh Sharma, Managing Director, Capri Global Capital ltd on the RBI announcement.

“Today’s (April 17, 2020) announcement by RBI was timely measure with an aim to provide strong support to NBFC sector. 

The announcement to conduct additional TLTRO amounting to Rs. 50,000 crore of which at least 50% is to be specifically invested in NCD, CP and bonds of small & mid-sized NBFCS and MFI, will address the demand for additional liquidity by financial institutions besides banks. 

Rajesh Sharma, MD,
Capri Global Capital

The special refinance facilities of Rs. 50,000 crore to NHB (Rs. 10,000 crore for refinancing housing companies), SIDBI (Rs. 15,000 crore for MSME loans ) and NABARD (Rs. 25,000 crore) will help meet credit need of MSME sector and  housing finance which has been severely affected by Covid-19. 

Further, NBFCs are allowed to exclude the moratorium period for NPA classification. Also, Real Estate project delayed for reasons beyond the control of promoters can now be extended by one year without asset classification downgrade by NBFCs.

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