With a view to further ease flow of funds to the housing sector, the National Housing Bank (NHB) is infusing an additional Rs 10,000 crore into Non-Banking Financial Companies (NBFCs). This facility will be over and above the existing finance schemes of the housing sector regulator NHB.
Finance ministry has stated that following to the budgetary announcements, the Reserve Bank of India (RBI) has unveiled a slew of measures for banks to avail additional liquidity of Rs 1.34 lakh crore. It noted that this would ease the liquidity stress in the NBFC sector and increase the access of these NBFCs to bank finance, and, in turn, enable them to continue to play their role in meeting the financing requirement of the productive sector of economy.
The ministry further said that the government has received a proposal from the RBI on draft modalities of the guarantee to operationalise the budget announcement. It said the Centre has accorded its approval to the modalities that would be set in motion by the RBI. It added that the Department of Financial Services would put in place an oversight mechanism for the scheme.