Kolkata, May 7 () The country's largest lender SBIhas decided to extend the RBI-approved moratorium to thecash-strapped NBFC sector to help them tide over the crisis,its MD Dinesh Kumar Khara said on Thursday.
The RBI has allowed banks to extend moratorium toborrowers of term loans of all kinds for three months --March, April and May.
"SBI has taken a decision to extend the moratoriumallowed by RBI to the NBFC sector which is facing severeproblem of cashflow," Khara said.
The bank would extend the moratorium to the Non-Banking Financial Companies (NBFCs) on a case-to-case basisafter assessing their cash budgets and examining the need forextending it, he told .
"Just to ensure that there is no gap in the cashflowand help them tide over the contingency, SBI has taken such adecision," Khara said.
Earlier, the State Bank of India extended 10 per centemergency COVID response contingency loan to all kinds ofborrowers to an extent of Rs 200 crore each, he said.
Reserve Bank Governor Shaktikanta Das on Mondayreviewed liquidity position and ways to promote lending to theMSME sector during a meeting with representatives of NBFCs andmutual funds amid the lockdown induced by the COVID-19pandemic.
Operations of NBFCs have commenced from Monday as thegovernment eased restrictions for the lockdown.
Some of the issues discussed during the meetingincluded availability of liquidity from banks and otherfinancial institutions and post-lockdown strategies for supplyof credit, including working capital, to MSMEs, traders andbottom of pyramid customers in semi-urban, rural and urbanareas, the RBI said.
Implementation of three months moratorium on repaymentof loan instalments announced by the RBI, and strengtheninggrievance redressal mechanisms were also discussed.
The governor acknowledged the critical role of NBFCs,including micro finance institutions (MFIs), in deliveringlast mile credit, and the importance of mutual funds infinancial intermediation, RBI said in the statement.
The RBI governor on Saturday had met heads of publicsector and private sector banks asking them to step up theirlending towards the MSME sector. dc SOM BJSOM SOM
Next Story
Tesla tells some laid-off employees their separation agreements are canceled and new ones are on the way
Taylor Swift's 'The Tortured Poets Department' is the messiest, horniest, and funniest album she's ever made
One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
The Future of Gaming Technology
Stock markets stage strong rebound after 4 days of slump; Sensex rallies 599 pts
Sustainable Transportation Alternatives
10 Foods you should avoid eating when in stress
8 Lesser-known places to visit near Nainital
