Atmanirbhaya Bharat Abhiyaan: Industry Responses

“The 30,000 crore Special Liquidity Scheme for investing in  investment grade paper of NBFCs/HFCs/MFIs is very positive as it directs liquidity where it is most required and will enable these institutions support their borrowing customers through this period of cashflow stress. Detailing and execution of the scheme is key, to ensure there is equitable distribution of the funds across the eligible borrower set.

The partial credit guarantee scheme is a bold move as it allows banks to renew lending to MFIs and NBFCs/HFCs with non-investment grade rating while ensuring that funds are released only after due risk assessment of the borrower’s business and cashflows together with active monitoring of the borrower through the duration of the borrowing  as banks/lenders will still carry 80% of the risk of borrower default.”―Sanjoy Dutta, Partner, Deloitte India