The Reserve Bank of India on Monday reviewed the liquidity and credit flow situation in the NBFC sector and assessed the position of Mutual Funds (MF) with respect of implantation of relief measures which it had earlier announced to mitigate the economic fallout of Covid-19 outbreak.
RBI Governor Shaktikanta Das held meetings with the representatives of both NBFCs and MFs in two separate sessions through video conference.
"The Governor acknowledged the critical role that NBFCs, including MFIs, play in delivering last mile credit, and the importance of Mutual Funds in financial intermediation," the RBI said in a statement.
During the meeting, the RBI discussed the post lockdown strategies with NBFCs and MFIs for supply of credit, including working capital, to MSMEs, traders and bottom of pyramid customers in semi-urban, rural and urban areas.
Implementation of three months moratorium on repayment of loan instalments announced by the RBI, and strengthening grievance redressal mechanisms were also discussed.
The RBI Governor also checked with NBFCs and MFs about their liquidity position, especially after introducing various schemes for the sectors. The concern is whether banks and financial institutions have begun lending to NBFCs which got hit after failure of few entities last year.
With MFs, the RBI also revised the functioning of the bond markets and took stock of their plans for the way forward, especially in context of Franklin Templeton Mutual Fund shutting down six of its funds due to credit issues.
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