Home / News

Business

  • 0

SIDBI pumps in `650 crore to reach out to low rated / unrated NBFCs and MFIs through RBI’s Liquidity Facility

SIDBI pumps in `650 crore to reach out to low rated / unrated NBFCs and MFIs through RBI’s Liquidity Facility

Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of Micro, Small & Medium Enterprises (MSMEs),  has sanctioned financial assistance of `650 crore to two Small Finance Banks (SFBs) viz. AU SFB and Jana SFB, so as to reach out, through the SFBs, to small-sized Non-Banking Financial Companies(NBFCs) / Micro Finance Institutions (MFIs) who in turn provide financial assistance to the small businesses and micro entrepreneurs.

The role of relatively smaller NBFCs and MFIs, which usually operate in remote geographies (including credit deficient, backward and aspirational districts), in the socio-economic development of the country is well established. They normally cater to the informal MSME sector, especially new to credit businesses, small retail trade, micro credit and other small household businesses, etc. in the hinterland due to their unique advantage of ‘next-door’ presence and accumulated knowledge about their clientele over a period of time (as compared to banks and larger NBFCs).

The COVID-19 pandemic has adversely impacted the businesses of MSMEs leading to slow-down in income generation activities of these small businesses and micro enterprises. This has further adversely affected the collections and liquidity position of the NBFCs and MFIs. The smaller NBFCs / MFIs, in particular, have always faced challenges in accessing adequate institutional funding and generally source their funds support from other larger and well-established non-banking companies / SFBs.

Talking about the assistance being extended by way of this double intermediation measure, Shri Sivasubramanian Ramann, Chairman & Managing Director, SIDBI said “The move is expected to benefit more than 40 small-sized NBFCs / MFIs which will help in  mitigating the hardships being faced by such NBFCs / MFIs in garnering resources for their businesses.”

An amount of `530 crore has already been released to these SFBs. The financial assistance has been extended out of the Special Liquidity Facility of `16,000 crore sanctioned by Reserve Bank of India to SIDBI to meet the challenges being faced by the MSMEs due to the prevailing Covid-19 pandemic situation.

 

 

 

Previous News

Technology News

Samsung Announces Exciting Cashback and Affordability Offers on Galaxy A Series Smartphones for Festive Season

Samsung Announces Exciting Cashback and Affordability Offers on Galaxy A Series Smartphones for Festive Season

Gurugram, India – October 11, 2023: Samsung announced exciting offers

HMD Nokia G42 5G (16GB+256GB) Variant Launched: With Snapdragon 480 Plus 5G Chipset Powers & Stylish Colours

HMD Nokia G42 5G (16GB+256GB) Variant Launched: With Snapdragon 480 Plus 5G Chipset Powers & Stylish Colours

Bangalore, 10th October 2023: The Nokia G42 5G (16GB+256G

IN-SPACe unveils Decadal Vision & Strategy for Indian Space Economy

IN-SPACe unveils Decadal Vision & Strategy for Indian Space Economy

Bengaluru, October 10, 2023  IN-SPACe (Indian National Space Promotion and

Philips OneBlade Partners with College Rivals for an Epic Gaming Journey Enabling Gen Z to ‘Move Fearlessly’

Philips OneBlade Partners with College Rivals for an Epic Gaming Journey Enabling Gen Z to ‘Move Fearlessly’

New Delhi, October 3, India- Philips India announces an exciting co

Latest Business News

SANY India partners with J&K Bank to provide financial solutions to its customers

SANY India partners with J&K Bank to provide financial solutions to its customers

Mumbai, March 13, 2024SANY India, a leading manufacturer of construction equipment, has taken a

Radisson Hotel Group strengthens footprint in Ayodhya with signing of 150-room Radisson Blu Hotel, Ayodhya

Radisson Hotel Group strengthens footprint in Ayodhya with signing of 150-room Radisson Blu Hotel, Ayodhya

Continuing its expansion plan in India, Radisson Hotel Group is excited to announce the signing of 150-room Radisson Blu Hotel, Ayodhya. A greenfie