Booster shot! RBI announces special refinance facility of Rs 15,000 crore to SIDBI
In order to provide greater flexibility to SIDBI in its operations, it has been decided to roll over the facility at the end of the 90th day for another period of 90 days.
May 22, 2020 / 08:04 PM IST
Reserve Bank of India (RBI) Governor Shaktikanta Das
The Reserve Bank of India (RBI) on May 22 slashed key repo rate by 40 bps, and to ease constraints for market participants and channel liquidity to various sectors announced a special refinance facility to SIDBI for Rs 15,000 crore.
The Small Industries Development Bank of India (SIDBI) plays an important role in meeting the long-term funding requirements of small industries.
In view of the tightening of financial conditions in the wake of the COVID-19 pandemic, and difficulties in raising resources from the market, the RBI announced a special refinance facility of Rs 15,000 crore to SIDBI for on-lending/refinancing, said the RBI statement.
Here's the full text of RBI Governor Shaktikanta Das' May 22 conference
The policy statement further highlighted that the Advances under this facility were provided at the RBI’s policy repo rate at the time of availment for a period of 90 days.
In order to provide greater flexibility to SIDBI in its operations, it has been decided to roll over the facility at the end of the 90th day for another period of 90 days.Check our complete coverage on RBI's May 22 announcements here