AIFIs to get liquidity support of ₹50,000 cr

The Reserve Bank of India (RBI), on Wednesday, said it will provide liquidity support aggregating ₹50,000 crore to All India Financial Institutions (AIFIs) – NABARD, NHB and SIDBI – for fresh lending.

The National Bank for Agriculture and Rural Development (NABARD) will get ₹25,000 crore; National Housing Bank/NHB (₹10,000 crore); and Small Industries Development Bank of India/SIDBI (₹15,000 crore)

The RBI had provided special refinance facilities of ₹75,000 crore to NABARD, SIDBI, NHB and Export-Import Bank of India during April-August 2020.

“To nurture the still nascent growth impulses, it is felt necessary to support continued flow of credit to the real economy.

“Accordingly, liquidity support of ₹50,000 crore for fresh lending during 2021-22 will be provided to AIFIs: ₹25,000 crore to NABARD; ₹10,000 crore to NHB; and ₹15,000 crore to SIDBI,” said the RBI in its Statement on Developmental and Regulatory Policies.