RBI extends fresh support to NABARD
Why is it in news?
- RBI would extend fresh support of Es. 50,000 crore to the All India Financial Institutions for new lending in FY22.
- Aim: To help mitigate the impact of the pandemic and aid economic revival.
- NABARD will be provided a special liquidity facility (SLF) of Rs. 25,000 crore for one year to support agriculture and allied activities.
- The other sectors to get support are rural non-farm sector and non-banking financial companies-micro finance institutions.
- An SLF of Rs. 10,000 crore will be extended to the National Housing Bank for one year to support the housing sector.
- SIDBI will be provided Rs. 15,000 crore under this facility for up to one year for funding of micro, small and medium enterprises (MSMEs).
- All three facilities will be available at the prevailing policy repo rate.
Source: The Hindu.