FIDC bats for liquidity window for NBFCs via banking channels for one-year

The FIDC has asked the RBI and the government to allow NBFCs an on-tap facility for issuance of NCDs to the retail market

Taking stock of the NBFC crisis, the Finance Industry Development Council (FIDC), a NBFC lobby group, has suggested a slew of reforms for the NBFC sector to the Reserve Bank of India (RBI) and the government.

Amongst the many short term measures the council suggested, creation of a dedicated liquidity window for NBFCs through banking channels for a one year period is one of the most important ones. The suggestions made by the FIDC include permitting medium and small sized NBFCs to avail refinancing  from Micro Units Development and Refinance Agency Bank (MUDRA).

Also, banks lending to NBFCs for on-lending