All the smaller non-banking finance companies have already written to the Reserve Bank requesting tremendous liquidity support. They also continue to face some types of challenges in raising huge funds.
In the current letter addressed to the Reserve Bank of India Governor, announcements made on May 5 by this bank have already discussed the liquidity needs of all the tiny.
Liquidity for significantly smaller NBFCs has continued to be challenging, despite some types of measures taken by the RBI in the past. All the industry bodies already said the liquidity situation for these NBFCs would be further aggravated since they have to restructure some of the loans like a personal loan or other loans given by them.
They already said that some of the sources of borrowing for NBFCs are a term like a gold loan or other loans from the banks and the financial institutions like SIDBI and NABARD. These are the players who do not access the capital market or issue bonds or debentures.
We already urge the Reserve Bank of India to increase the support outlay to AIFIs from Rs 50,000 crore. Some additional Rs 25,000 crore can also be made available exclusively to all the medium and significantly smaller NBFCs.
This would also help smaller NBFCs maintain the total asset-liability match as the assets typically are for a few years.
They already said some types of the best benefit of all the priority sector lending classification for lending by some best banks to NBFCs for on-lending to be regularized as part of the overall.
This also requested that besides outright buy-out, most banks can also be allowed to also finance against all the existing unencumbered MSME pool originated by NBFCs. However, this must be within the overall limit.