RBI's steps for NBFCs may not boost credit flow to broader economy: Moody's

On Friday, the RBI said it will conduct the second tranche of targeted long-term repo operation (TLTRO 2.0) for an aggregate amount of Rs 50 billion, to begin with.

The Reserve Bank of India's (RBI) measures to help facilitate funds to the NBFC sector is unlikely to boost the credit flow to the broader economy as NBFCs would shore up their own liquidity rather than on-lending to customers, Moody's Investors Service said on Sunday.

Moody's Investors Service Vice-President (Financial Institutions Group) Alka Anbarasu said the measures will soften the near-term credit negative impact on non-banking financial companies' (NBFCs) funding and liquidity.

On Friday, the RBI said it will conduct the second tranche of targeted long-term repo operation (TLTRO 2.0) for an aggregate amount of Rs 50 billion, to