RBI grants Rs 5000 cr refinance to help cash starved MSMEs
RBI grants Rs 5000 cr refinance to help cash starved MSMEsMumbai, Dec 5 (KNN) Reserve Bank's special Rs 5,000- crore refinance grant will cumulatively help in the flow of up to Rs 20,000 crore to the cash-starved micro, small and medium enterprises (MSMEs), Small Industries Development Bank of India (SIDBI) has said.
According to the SIDBI Deputy Managing Director, N K Maini, the facility, fully utilised over the period of four cycles of 90 days each, is projected to offer cumulative assistance up to Rs 20,000 crore and would go a long way in addressing the problem of liquidity and delayed receivables of MSMEs.
SIDBI further said in its notification yesterday that its board has considered the introduction of Special Refinance Facility.
The institution proposes to extend assistance to the MSMEs for supply of their goods and services to corporates against bills and invoices and also provide need-based liquidity support to working capital clients, it said.
Earlier last month, the RBI announced that it would provide Rs 5,000 crore refinance in liquidity support to the SIDBI for one year.
According to a RBI notification last month, "In view of the need to ease the liquidity stress to micro and MSE sector, which is employment intensive and contributes significantly to exports, it has been decided to provide refinance of an amount of Rs 5,000 crore to SIDBI." (KNN/SD)