Finance Industry Development Council (FIDC), the industry body for non-banking financial companies (NBFCs), said the current liquidity crisis is not a solvency issue, but is more of a growth-related problem. “As a short-term measure, there is an immediate need for the regulator to put in place and create a dedicated window for NBFCs. What we are saying is a message from the regulator or government would really do the trick," said Raman Aggarwal, chairman, Finance Industry Development Council. The industry body has also sought other short-term measures such as allowing refinance for all small and medium NBFCs from the Pradhan Mantri Mudra Yojana. This is not the first time that the industry body has raised the demand for a special liquidity window to help NBFCs tide over the crisis following the default by IL&FS.

Source: Mint July 02, 2019 17:00 UTC