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NBFC activities now allowed

The home ministry of the central government has revised its earlier directive with regard to guidelines allowing activities in the lockdown situation. Now those activities allowed under the order issued  by the government include those of NBFCs, MFIs and cooperative credit societies. In an order issued on 16 April, the home secretary said in continuation of the ministry’s order on 15 April allowing activities during the lockdown period, it has been decided to add certain other activities too to the earlier list. Apart from the activities of NBFCs, MFIs and cooperative credit societies, the list also includes activities relating to collection, harvesting and processing of minor forest produce, non-timber forest produce by scheduled tribes and other forest dwellers in forest areas and those relating to construction activities in rural areas, including water supply and sanitation, laying and erection of power transmission lines and slaying of telecom optical fiber and cable and related activities. The earlier order of the home ministry did not include activities of NBFCs, MFIs and cooperative credit societies.

The amendment to the earlier order comes in the light of representations made to the government, especially by Mahesh Thakkar, director general, the Finance Industry Development Council (FIDC), seeking a review on the curbs put on the activities of NBFCs, MFIs and cooperative credit societies, which would have inconvenienced the general public, especially those not financially strong and dwelling in rural areas.

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