Govt vs RBI: What data says about shadow banks' debts, credit flow to MSMEs

NBFC debt maturing in Nov and Dec estimated at Rs 2.2 trillion

Over the past few weeks, the central government and the Reserve Bank of India (RBI) have been locked in an intense debate over several issues. Three are of critical importance. First, ever since the implosion of IL&FS, many have been concerned about the liquidity crunch facing non-banking financial companies (NBFCs). As shown in Chart 1, Rs 2.2 trillion of NBFC debt was set to mature in November and December. And while there were concerns that NBFCs may not be able to roll over their debt, so far there has not been any default. 

It is possible that financial institutions such