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Special Liquidity Scheme (SLS)
Why is it in news?
- The proposals of stressed non-banking financial companies (NBFCs) and housing finance companies (HFCs) have been sanctioned under the special liquidity window.
- The Special Liquidity Scheme (SLS) of Rs 30,000 crore was announced with an aim to improve the liquidity position of NBFCs and HFCs.
- The scheme is a part of the AatmanirbharBharat package .
Details:
- Any NBFC registered with RBI and any HFC registered with the National Housing Bank, are eligible to raise funding from this facility subject to certain conditions.
- RBI has provided funds for the scheme by subscribing to government-guaranteed special securities issued by a trust set up by SBI Capital Markets Ltd (SBICAP).
- The scheme is being implemented by SLS Trust, the SPV set up by SBICAP.
- The special liquidity scheme is open for three months for making subscriptions by the Trust.
On part of Government:
- Under the scheme, the government will provide an unconditional and irrevocable guarantee to the special securities issued by the Trust.
- The instruments will be commercial papers and non-convertible debentures.