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Govt to use RBI money to support struggling NBFCs for just three months

NBFCs cry foul as they were expecting a two-three year support

Coronavirus | RBI meeting | Union Cabinet

The government will use Reserve Bank of India (RBI) money to support struggling non-banking financial companies (NBFC), but only for three months, the Union Cabinet said on Wednesday.

Against the industry expectation of longer-term support — NBFCs were expecting two-three years — the government will buy bonds maturing in three months. Also, the government’s partial credit guarantee scheme will also be for commercial paper (CP) that matures within a year. “The industry was looking for long-term funds so that ...

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First Published: Thu, May 21 2020. 12:08 IST