Reopening of services to depend on permission from local authorities: NBFCs

Although the government has allowed NBFCs, HFCs to start operations, they have not allowed resumption of operations in hotspots and have also not permitted field activities

While the government has allowed non-banking financial companies (NBFCs), including mortgage lenders and microfinance institutions (MFIs), to start operations, albeit with bare minimum staff, resumption of services by them will depend on permissions from state governments and local authorities.

The shadow lenders are holding discussions and formulating plans on how to make things work.

“It depends on the local government what they are allowing and what they are not. The Delhi government has said it will not permit any relaxation in the lockdown measures. Similarly each state may have its own views. We are prepared to start operations but in how many