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NBFCs to use RBI's liquidity boost to focus on refinancing debt obligations

On Friday, the Reserve Bank of India (RBI) came up with policy measures to ensure there is enough liquidity in the system

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Bond market debt obligations would cover a rollover of commercial paper and a periodic repayment of long-term debt. Apart from bank borrowing, long-term repo operations (LTROs) are likely to be good option.

Shreepad S Aute Subrata Panda Mumbai

4 min read Last Updated : Mar 27 2020 | 10:07 PM IST

India’s cash-starved shadow banking sector will get a breather out of the liquidity boost the Reserve Bank of India (RBI) has given.

Part of it will be used by the shadow lenders to refinance their debt obligations at a time when their cash flows could be affected with a moratorium on term loans.

On Friday, the Reserve Bank of India (RBI) came up with policy measures to ensure there is enough liquidity in the system.

The central bank said it would conduct auctions of targeted term repos of Rs 1 trillion of a three-year tenor at a floating rate linked

Topics : NBFCs NBFC crisis Reserve Bank of India RBI loan refinancing debts ICRA Crisil report

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