NBFCs included in TLTRO ‘on tap’ scheme

The Reserve Bank of India on Friday proposed to provide funds from banks under the TLTRO ‘on tap scheme’ to NBFCs for incremental lending to these sectors.

Reserve Bank of India Governor Shaktikanta Das said NBFCs are well recognised conduits for reaching out last mile credit and act as a force multiplier in expanding credit to various sectors.

“With a view to support revival of activity in specific stressed sectors that have both backward and forward linkages and have multiplier effects on growth, the RBI had announced the TLTRO on Tap Scheme for banks on October 9, 2020,” Das said on Friday.