Govt launches Special Liquidity Scheme of Rs 30,000 Cr to improve liquidity for NBFCs and HFCs

Government launched the Special Liquidity Scheme of Rs 30, 000 Cr to improve the liquidity position for Non-Banking Finance Companies- NBFCs and Housing Finance Companies- HFCs.
The scheme was launched through a Special Purpose Vehicle set up by SBICAP.
The Scheme will remain open for three months for making subions by the Trust. The period of lending by the Trust will be for a period of up to 90 days. The financing would be used by the NFBCs and HFCs only to repay existing liabilities and not to expand assets.
This facility is a part of the Central Government and RBI’s efforts to alleviate the concerns of the market participants on the availability of funds to the sector.
Any NBFC including Micro-finance Institutions registered with RBI and any HFC registered with the National Housing Bank complying with the given conditions will be eligible to raise funding.