The Reserve Bank of India (RBI) has provided additional special liquidity facility of Rs 10,000 crore at the policy repo rate of which Rs 5,000 crore will be given to National Housing Bank (NHB) and Rs 5,000 crore to National Bank for Agriculture and Rural Development (NABARD)
The liquidity support to NHB will shield the housing sector from liquidity disruptions and augment the flow of finance to the sector through housing finance companies (HFCs) and the additional liquidity support to NABARD will ameliorate the stress being faced by smaller non-bank finance companies (NBFCs) and micro-finance institutions in obtaining access to liquidity.
