Press Releases

PDF document (82 kb)
Date : Jul 22, 2009
Special Arrangements to give Liquidity Support to NBFCs extended

The facility of providing liquidity support to non-deposit taking but systemically important Non-Banking Financial Companies (NBFCs-ND-SI) is now extended for any paper issued by NBFCs up to September 30, 2009. The Special Purpose Vehicle (SPV) would cease to make fresh purchases after December 31, 2009 and would recover all dues by March 31, 2010.

Earlier, the facility was available for any paper issued by NBFCs till March 31, 2009. It was later extended for papers issued up to June 30, 2009 and is now being extended to papers issued up to September 30, 2009.

It may be recalled that the Government of India, in January 2009, announced an arrangement for providing liquidity support to meet the temporary liquidity mismatches for eligible Non-Banking Financial Companies. The scheme was finalised for providing liquidity support to Non-Banking Financial Companies - Non-Deposit Taking-Systemically Important (NBFCs-ND-SI) and Industrial Development Bank of India Stressed Asset Stabilisation Fund (IDBI SASF) Trust was notified as Special Purpose Vehicle for undertaking this operation.

Under the arrangement, the Reserve Bank of India offered to purchase securities issued by the SPV guaranteed by the Government of India for an aggregate amount of Rs.20,000 crore. The SPV would, on request from issuing NBFCs, directly purchase the short term paper, such as, commercial papers and non-convertible debentures, with residual maturity of not more than 90 days and rated as investment grade, from the issuing NBFCs.

G. Raghuraj
Deputy General Manager

Press Release : 2009-2010/126

 

Related Press Releases :
Mar 31, 2009
Feb 18, 2009

2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Archives
Top