RBI promises liquidity support to NBFCs, MFIs dealing with cashflow issues

RBI has put the ball in banks' court on the moratorium issue

The Reserve Bank of India (RBI) on Friday said it will conduct targeted long-term repo operations 2.0 (TLTRO 2.0) to provide the much-needed liquidity support to the shadow banking sector that has been hit hard in the ongoing health crisis and the subsequent nationwide lockdown.

However, the RBI did not provide any clarity on the issue of moratorium to non-banking financial companies (NBFCs) and microfinance institutions (MFIs) on the loans they have taken from banks, thereby putting the ball in banks’ court to decide on the issue.