RBI Mumba/UNI: Reserve bank of India (RBI) has decided to extend a special liquidity facility of Rs 16,000 crore to SIDBI for on-lending and refinancing through novel models and structures.
The facility is aimed at further supporting the funding requirements of micro, small and medium enterprises (MSMEs), particularly smaller MSMEs and other businesses including those in credit deficient and aspirational districts,
“This facility will be available at the prevailing policy repo rate for a period of up to one year, which may be further extended depending on its usage,” the RBI said.
To nurture the still nascent growth impulses and ensure continued flow of credit to the real economy, the Reserve Bank had extended fresh support of Rs 50,000 crore on April 7, 2021 to All India Financial Institutions (AIFIs) for new lending in 2021-22. This included Rs 15,000 crore to the Small Industries Development Bank of India (SIDBI).
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