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SIDBI welcomes RBI grant

SIDBI said Reserve Bank of India’s special Rs 5,000-crore refinance grant it received recently will cumulatively help in the flow of up to Rs 20,000 crore to the cash-starved micro, small and medium enterprises (MSMEs). “The facility, fully utilised over the period of four cycles of 90 days each, is projected to offer cumulative assistance up to Rs 20,000 crore and would go a long way in addressing the problem of liquidity and delayed receivables of MSMEs,” SIDBI’s deputy managing director N K Maini said. The RBI had announced it would extend Rs 5,000 crore in liquidity support to the development bank for one year. The central bank had said in view of the need to ease the liquidity stress to micro and MSE sector, which is employment intensive and contributes significantly to exports, it has been decided to provide this refinance to SIDBI. The refinance will be available for direct liquidity support to finance receivables, including for exports, to MSMEs through selected intermediaries, including banks.

SIDBI said it proposes to extend assistance to the MSMEs for supply of their goods and services to corporates against bills and invoices and also provide need-based liquidity support to working capital clients.

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