Rs 30,000 cr Special Liquidity Scheme under Atmanirbhar Bharat package
Published on September 13, 2020 | News Source: ANI
New Delhi, Sep 13: The Union Ministry of Finance informed that an amount of Rs 30,000 crore Special Liquidity Scheme has been progressed for non-banking, housing finance companies and Monetary Financial Institutions (MFI) as part of the Atmanirbhar Bharat package.
According to the Finance Ministry, 37 proposals involving Rs 10,590 crores have been approved as on September 11. While six applications seeking financing of Rs 783.5 crore are under process. The Ministry on Sunday updated on the progress made in the implementation of the ongoing schemes of the Aatmanirbhar Bharat package to date.
"Rs 30,000 crore Special Liquidity Scheme for Non-Banking Financial Company (NBFCs)/ Housing Finance Companies (HFCs)/ Monetary Financial Institutions (MFIs) has progressed well. As on September 11, 37 proposals involving an amount of Rs 10,590 crores have been approved. Six applications seeking financing of Rs 783.5 crore are under process," said the Ministry in a press release.
"As reported by Public Sector Banks and top 23 Private Sector Banks, additional credit amounting to Rs 1,63,226.49 crores sanctioned to 42,01,576 borrowers as on September 10," the Ministry added.
The Partial Credit Guarantee Scheme 2.0 for NBFCs, HFCs and MFIs to do fresh lending to MSMEs and individuals. "The banks have approved the purchase of a portfolio of Rs 25,055.5 crore and are currently in the process of approval/negotiations for additional Rs 4,367 crore," the Ministry said. Updating on Additional Emergency Working Capital Funding for farmers through NABARD, the Ministry said that as on August 28, Rs 25,000 crore has been disbursed.
Meanwhile, the balance amount of Rs 5,000 crore has been allocated to NABARD under the Special Liquidity Facility (SLF). Reserve Bank of India has allocated this amount for smaller NBFCs and NBFC-MFIs. NABARD is finalising operational guidelines to roll it out soon, said the Ministry.
Besides, NABARD has also launched a Structured Finance & Partial Guarantee scheme in collaboration with two agencies and banks to help unrated NBFCs/MFIs to get credit from lenders, stated the release.
This mechanism worked out with two such agencies and banks will enhance eligibility of credit by 5-6 times to those small MFIs who do not have any rating, the Ministry added in the hope to reach out to the people in remote and unreached areas. Once all the earmarked Rs.500 crore for this scheme is deployed, credit availment by those small NBFCs/MFIs to an extent of Rs. 2500 to Rs 3000 crore is envisaged, the release added.