August 18, 2022 00:18 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Supreme Court asks Centre to take steps to lift AIFF ban | Congress slams Centre for Bilkis Bano rape convicts' release | Property of militant who killed Kashmiri Pandit in Shopian attached | Sexual harassment charge not attracted when woman wears 'sexually provocative dresses': Kerala court | Actor Jacqueline Fernandez now co-accused in Rs. 200-cr money laundering case
RBI announces special liquidity scheme for NBFCs and HFCs through a SPV

RBI announces special liquidity scheme for NBFCs and HFCs through a SPV

India Blooms News Service | @indiablooms | 01 Jul 2020, 11:46 am

Mumbai/IBNS: In the bid to improve the liquidity position of the NBFCs and HFCs amid the sagging economic situation triggered by Covid-19 pandemic, the government has approved a special scheme to prevent potential systemic risk in the financial sector, the Reserve Bank said on Wednesday.

The scheme will be made available through a  Special Purpose Vehicle (SPV) to:

  • The Non-Banking Financial Company (NBFCs), including Microfinance Institutions that are registered with the RBI, under the Reserve Bank of India Act, 1934, excluding those registered as Core Investment Companies and the Housing Finance Companies that are registered under the National Housing Bank Act, 1987.
  • The CRAR/CAR of NBFCs/HFCs should not be below 15% and 12%, respectively, the regulatory minimum, as of March 31, 2019.
  • Further, their net non-performing assets (NNPA) should not be greater than 6% as on March 31, 2019.
  • The companies seeking the benefits should have made profits in at least one of the last two preceding financial years--2017-18 and 2018-19.
  • They should not have been reported  under SMA-1 or SMA-2 category by any bank for their loans during the period of one year prior to August 01, 2018.
  • The  NBFCs/HFCs should be rated investment grade by a SEBI registered rating agency.
  • They should have appropriate levels of collateral as required by the SPV.

A Mint report said that the SPV has been set up by SBICAP, a subsidiary of the State Bank of India, as per the government decision.

Related Images
FOHMA addresses press conference 01 Jan 1970, 05:30 am
Related Videos
PM Modi on Union Budget 2022-2023 01 Feb 2022, 06:28 pm
IBNS Live Business Chat 30 Dec 2021, 05:53 pm