Home Finance Finance Ministry ready to do more for NBFCs, says Nirmala Sitharaman

Finance Ministry ready to do more for NBFCs, says Nirmala Sitharaman

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Will seek details from PSBs on funding to NBFCs, retail customers on Oct 14

Finance Minister Nirmala Sitharaman, on Thursday, said she is “not sitting back” after the recent spate of measures, and will take more steps if required for non-banking finance companies and other sectors.

The minister will be meeting the chiefs of public sector banks on October 14, and she said will seek details of funding to NBFCs and retail customers.

“I am not sitting back saying I have given some solutions for NBFCs. There may be more issues. I am willing to do that. I am willing to take steps. Similarly for other sectors,” she said at a press briefing during her visit to Mumbai ahead of the Maharashtra Assembly Elections.

She had met public and private sector bank chiefs last month in two sets of meetings, and will seek the progress report on credit growth.

“I am hearing a lot of reports that many NBFCs, capable of good business, still require liquidity infusion and is not available. I will ask for all data – on the actual numbers of NBFCs who have benefited, how much has been given, on retail credit and other categories. I am closely monitoring,” she said. Sitharaman, who has announced a series of measures in recent weeks to boost economic growth and revive demand, said that she has tried to intervene for sectors that were stressed.

“I came up with intervention in response to identified issues. I did not go in with a blueprint, was open-minded,” she said, noting that the Budget 2020-21 is now approaching.

“I wouldn’t say I have addressed all the pain points. Despite solutions, problems still persist,” she said, stressing that the government is trying to address every sector. Declining to comment on recent growth forecasts and questions on fiscal deficit, she said that she will look at the “nitty gritties” closer to the Budget, but her main focus right now is to ensure that there is money in the economy.

“I am taking the assessment given by the RBI and other rating agencies. My business is to do the necessary demanded intervention so that the stressed out sectors will have something for them,” she said.

While she may be in a challenging position for the next Budget, Sitharaman said that she is working to ensure that liquidity is reaching NBFCs and micro, small and medium enterprises for their businesses to keep running.

“Now my focus is to get money in the hands of the in the economy, in the hands of the people,”she stressed.

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