The Reserve Bank of India (RBI) on Wednesday announced to provide additional liquidity support of Rs 50,000 crore for fresh lending in 2021 to the India financial institutions (AIFIs).

In its first bi-monthly monetary policy for FY22, RBI Governor Shaktikanta Das said that liquidity support of Rs 50,000 crore for fresh lending in 2021 will be provided to financial institutions such as NABARD, NHB and SIDBI.

"In consonance with the policy objective of nurturing the still nascent growth impulses, it has been decided to extend fresh support of Rs 50,000 crore to the AIFIs for new lending in 2021-22," Das said.

Accordingly, National Bank for Agriculture and Rural Development (NABARD) will be provided a special liquidity facility (SLF) of Rs 25,000 crore for a period of one year to support agriculture and allied activities, the rural non-farm sector and non-banking financial companies-micro finance institutions (NBFC-MFIs).

SLF of Rs 10,000 crore will be extended to National Housing Bank (NHB) for one year to support the housing sector.

To meet the funding requirements of micro, small and medium enterprises (MSMEs), SIDBI will be sanctioned Rs 15,000 crore under this facility for a period of upto one year.

All these three facilities will be available at the prevailing policy repo rate.

Das said the RBI will support the market with adequate liquidity via its various tool kits.

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First Published:Apr 7, 2021 10:47 AM IST