FM announces support measures for NBFCs/HFCs

Announces liquidity for NBFCs, allowed to use Aadhaar based KYC

The finance minister has announced number of support measures for struggling NBFC sector including more credit support for purchase of houses, vehicles, consumption goods.

The finance minister has announced additional liquidity support to HFCs Rs 20000 crore by NHB thereby increasing it to Rs 30,000 crore.

The finance minister has also announced that the Partial Credit Guarantee scheme for purchase of pooled assets of NBFCs/ HFCs upto Rs 1 lakh crore will be monitored at highest level in each bank.

Further, the prepayment notices issued to NBFCs will be monitored by Banks.

In a big move, the NBFCs are permitted to use the Aadhaar authenticated bank KYC to avoid repeated processes. Accordingly, the necessary changes shall be made in PMLA rules and Aadhaar Regulations. The move will enable easier and fast tracked onboarding of customers.

In order to take advantage of liquidity with PSBs and last mile customer connect of NBFCs, PSBs would fast track collaboration for loans to MSMEs, small traders Self Help Groups, MFI clients borrowers in co-origination mode with NBFCs.

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