₹18,500 cr. debt to be repaid in three months: MFIs tell RBI

Sa-dhan suggests direct lending by the regulator

Updated - May 04, 2020 10:57 pm IST

Published - May 04, 2020 10:09 pm IST - Mumbai /New Delhi

Shaktikanta Das. File

Shaktikanta Das. File

With banks declining to extend a moratorium to non-banking finance companies and micro-finance institutions, micro-lenders have informed the Reserve Bank of India that they have to repay a debt of ₹18,500 crore in the next three months.

Though the NBFCs have extended loan moratorium to their customers, in the absence of a similar benefit from their lenders, that is commercial banks, they are staring at a potential liquidity crisis. Their woes have been compounded as banks are reluctant to extend loans. RBI Governor Shaktikanta Das met NBFCs, including MFIs, and mutual fund industry representatives in two separate meetings on Monday.

Micro-lenders’ association Sa-dhan, which attended the meeting, suggested direct lending by the RBI to micro-finance institutions to tide over the liquidity crisis.

Sa-dhan also urged that the moratorium be extended until June 30, 2020, as March payments were mostly done by customers. The lender also sought relaxation on asset classification norms for another three months, that is, up to September 30, 2020.

A statement from the RBI said that in a meeting with representatives of NBFCs and micro-lenders, issues regarding availability of liquidity from banks and implementation of moratorium were discussed.

Post-lockdown strategies for supply of credit were also discussed.

In the meeting with representatives of the mutual funds industry, issues like the impact of measures taken by the RBI regarding provision of liquidity and functioning of the bond markets were discussed.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.