Govt to use RBI money to support struggling NBFCs for just three months

NBFCs cry foul as they were expecting a two-three year support

The government will use Reserve Bank of India (RBI) money to support struggling non-banking financial companies (NBFC), but only for three months, the Union Cabinet said on Wednesday.
 

Against the industry expectation of longer-term support — NBFCs were expecting two-three years — the government will buy bonds maturing in three months.
 

Also, the government’s partial credit guarantee scheme will also be for commercial paper (CP) that matures within a year.
 

“The industry was looking for long-term funds so that we don’t run into an asset-liability mismatch. And if somebody was to draw three months’ money, they will have to create