India covid-19 crisis Coronavirus India

NBFCs in a fix after RBI's moratorium

Reading now: 492
www.livemint.com

Non-banking finance companies (NBFC) are in a fix after Reserve Bank of India (RBI) has asked all financial institutions to offer a moratorium to their borrowers.

While NBFCs would need to give a three-month moratorium to their customers, many of them may need to service their debt obligations towards banks, mutual funds and other financial institutions.

Finance Industry Development Council (FIDC), an industry body representing NBFCs, has written to RBI and Ministry of Finance raising concerns about this.

NBFCs have different source of funding including term loans from banks and by issuing papers to investors. In the notification that RBI has issued, they have said that financial institutions are “permitted" to grant a moratorium.

Read more on livemint.com
The website covid-19.rehab is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News

Gotabaya Rajapaksa - The economy is recovering, says President during meeting with professionals - newsfirst.lk
newsfirst.lk
35%
217
The economy is recovering, says President during meeting with professionals
COLOMBO (News 1st); President Gotabaya Rajapaksa said that the nature or extent of the challenges will not matter in fulfilling the promises made to the people.He noted that development activities continue in the country while taking necessary steps to control the COVID-19 pandemic.The President also pointed out that the economy, which had been collapsed for nearly two years, is gradually recovering.The President made these remarks participating in the first round of discussions in a series of sessions with professionals representing various fields, held at the President’s House on Friday (11).The professionals who participated in the discussion said that they are further committed to make the national programme a success by giving the necessary strength to achieve the goals desired by the President, said a statement.The professionals vehemently rejected the allegations spread by some sections with the objective of achieving narrow political agendas, the statement added.Experts in the field said that the new approach to agriculture initiated by the President is being continuously supported by the researchers and entrepreneurs who are engaged full time in these fields, further noted the statement.Representatives from a wide range of fields, including education, policy, sociology, agriculture, research, water and renewable energy, medical, engineering and innovation, were present at the discussion with the President.Ministers, State Ministers, Members of Parliament, the Governor of the Central Bank, the Secretary to the President, the Principal Advisor to the President and many others were also present.
DMCA