SIDBI receives Rs 15k cr from RBI as Covid-19 relief fund to aid MSMEs
Intending to help revive and support the Micro, Small and Medium
Enterprises that suffered grave losses during Coronavirus pandemic, Small
Industries Development Bank of India (SIDBI) has come up with liquidity support
scheme. On Thursday, SIDBI announced that it had received Rs 15,000 crore from
the Reserve Bank of India (RBI) and the funds will be extended to the
Through a statement SIDBI said, “The schemes would cover all eligible entities having investment-grade ratings irrespective of the size of the organisation to ensure wider coverage.”
Interested MSMEs can avail financing through banks, Non-Banking Financial Companies (NBFCs) and Micro finance Institutions (MFI).
SIDBI said that only those NBFCs that have been in business for at least three years and have an external credit rating of BBB- or superior as on March 31, 2020, will receive the funds. The qualifying NBFCs must also have a minimum net worth of Rs 20 crore, minimum asset size of Rs 50 crore, and must be registered with RBI as an Investment and Credit Company (ICC).
Similarly, the qualifying MFIs must be registered as a society, trust cooperative society, company, or NBFC with a minimum credit rating of BBB-. In the case of banks, they must have a minimum net worth of Rs 100 crore, minimum capital adequacy ratio of 9% and Non-Performing Assets (NPA) below 10%.
SIDBI received the funds from the RBI under the Special Liquidity Facility (SLF) provision and as announced by the RBI Governor Shaktikanta Das on April 17.