Reserve Bank of India (RBI) has announced a special refinancing package to NABARD, SIDBI and NHB worth Rs 50,000 crore.
During the media address, RBI, Governor, Shaktikanta Das said, “All India financial institutions like NABARD, SIDBI and National Housing Bank (NHB) play an important role in meeting the long-term funding requirements of agriculture and rural sector; small industries, housing finance companies, MFIs, (Micro Finance Institutions) and NBFCs (Non-Banking Financial Company).”
From the Rs 50,000-crore package, NABARD, SIDBI and NHB will get Rs 25,000 crore, Rs 15,000 crore and Rs 10,000 crore respectively.
He added these institutions usually raise funds from the market as per RBI guidelines, but lately, they have found it difficult in raising resources from the market.
Das stated these packages have been decided based on the requirements by these institutions. “...Should there be additional requirements by institutions based on the actual utilisation of resources, RBI will assess the situation and review it.” He assured that RBI will step up levels to increase liquidity support.
He also added that these institutions will avail these funds based on the present repo rate of 4.4 per cent, allowing these institutions to deploy these funds at a reasonable rate.
Through this refinance package, RBI is looking at providing relief to MSMEs ans rural India who take loans from regional rural banks, co-operative banks, NBFCs and other financial institutions.
