RBI has made life a bit easier for NBFCs, MFIs amid Covid-19 pandemic

The RBI has indicated that it expects inflation to come down by September, which means that more rate cuts are in the offing

The Reserve Bank of India (RBI) has proactively made two sets of relevant announcements as a follow-up of what were made in the credit policy recently. The first is to focus on provision of liquidity and the second to sharpen the solvency issue related to companies.

The TLTRO is now being increased by Rs 50,000 crore with the caveat that 50 per cent has to go to the small and medium size non-bank finance companies (NBFCs), which in a way, is sectoral targeting starting with this segment. This is a positive move as NBFCs, including micro finance institutions (MFIs), are