MUMBAI : The Reserve Bank of India ( RBI) is exploring steps to aid struggling microfinance institutions (MFIs) through a separate credit line, said a senior RBI official, requesting anonymity.
While the health of MFIs has been a cause for concern with collections dropping to near-zero due to the nationwide lockdown, the sector suffered yet another jolt when banks refused to offer moratoriums.
The central bank is closely examining the data received from MFIs, including their credit ratings, liquidity positions and cash in hand.
According to the official, 31 out of 90 MFIs have floated their own investment grade papers and are therefore eligible to avail funding under the targeted long-term repo operations (TLTRO).