On Apr 23, SIDBI launched a special liquidity facility of 150 bln rupees for micro, small and medium enterprises struggling on account of the liquidity squeeze, due to the coronavirus pandemic. Earlier, SIDBI had said term loans should be repaid in bullet instalment after 90 days from the date of draw or such date as may be decided by the bank. In the wake of tightened liquidity conditions due to disruptions caused by the COVID-19 pandemic, the RBI on Apr 17 had announced a 500-bln-rupee special refinancing facility for financial institutions such as National Bank for Agriculture and Rural Development, Small Industries Bank of India and National Housing Bank.
Of the total refinancing amount of 500 bln rupees, NABARD was allotted 250 bln rupees for refinancing regional rural banks, cooperative banks and micro finance institutions, SIDBI allotted 150 bln rupees for lending and refinancing small and medium enterprises, and 100-bln-rupee to NHB for providing liquidity to housing finance companies.
