Coronavirus crisis | FM Sitharaman announces Rs 30,000-crore special liquidity scheme for NBFCs, MFIs

Finance Minister Nirmala Sitharaman on May 13 announced a Rs 30,000- crore special liquidity scheme for non-banking finance companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs).

She also announced an extension of the partial credit guarantee scheme worth Rs 45,000 crore under which the first 20 percent loss in debt papers will be borne by the government. AA and below rated and unrated papers will be eligible for this investment, she said.

FM Sitharaman detailed the Rs 20 lakh crore economic stimulus package under the Atmanirbhar Bharat Abhiyan. The first tranche of the announcement has 15 relief measures, of which six pertain to the micro, small and medium enterprises (MSMEs), two related to Employees' Provident Fund, two on non-banking finance companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs), one on discoms, one for contractors, one for real estate and 3 tax measures.

Her briefing follows Prime Minister Narendra Modi's announcement of the relief package, in his address to the nation yesterday. He said the package comes up to a total of Rs 20 lakh crore, which is nearly 10 percent of India's GDP. It includes the measures earlier announced by the finance ministry and steps taken by the Reserve Bank of India, PM Modi said.