Mumbai, April 26 (KNN) The Finance Industry Development Council (FIDC) has urged the Reserve Bank of India (RBI) to renew the extension of dispensation of bank lending to registered NBFCs (other than MFIs) for on-lending to MSME, agriculture and sectors classified in the priority sector by another year.

The dispensation expired on March 31 this year which was the 4th extension since August 2019.

In a letter to RBI Governor Shaktikanta Das, the council has said that the renewal will provide a much needed boost to credit to the needy segment of borrowers.

It will offer last mile link in delivery of credit to small and medium businesses for financing of equipment, business expansion, working capital and for similar business purposes, said FIDC, representative body of assets and loan financing NBFCs.

The central bank had classified Micro and small enterprises and housing (with an increased limit) as priority sector lending up to certain limits in August 2019.

This was then extended in April 2021 and was valid up to September 30 which was stretched for a month and the final extension was till March 31, 2022. (KNN Bureau)