The Reserve Bank of India (RBI) has announced a host of measures to provide liquidity support to non-banking financial companies (NBFCs).
They shall receive ₹50,000 crore worth of liquidity booster.
Key takeaways:
RBI has also decided to give them certain benefits for loans which are being extended to the commercial real estate sector.
The RBI has also decided to provide special refinance facility of ₹50,000 crore to NABARD, SIDBI and NHB to enable them to meet sectoral credit needs.
Important value additions:
Reserve Bank of India
It is India’s central bank, which controls the issue and supply of the Indian rupee.
RBI is the regulator of entire Banking in India.
RBI plays an important part in the Development Strategy of the Government of India.
RBI was set up in 1935 under the Reserve Bank of India Act,1934.
Non-Banking Financial Company
It is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency.
The most important difference between non-banking financial companies and banks is that NBFCs don’t take demand deposits.
National Bank for Agriculture and Rural Development (NABARD)
It is an Apex Development Financial Institution in India.
It deals with matters concerning Policy Planning and Operations in the field of credit for Agriculture and other Economic activities in Rural areas in India.
It is active in developing Financial Inclusion policy.
It was established on the recommendations of B.Sivaramman Committee, on 12 July 1982.
Small industrial Development Bank of India (SIDBI)
It is a development financial institution in India.
It serves as the principal financial institution in the Micro, Small and Medium Enterprises (MSME) sector.
It was established on April 2, 1990, through an Act of Parliament.
It is headquartered in Lucknow.
It operates under the Department of Financial Services, Government of India.
National Housing Bank (NHB)
It is a Government of India owned entity.
It was set up on 9 July 1988 under the National Housing Bank Act, 1987.
