Mumbai: Specialised small businesses lender Sidbi today said the Reserve Bank's special Rs 5,000-crore refinance grant 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 Deputy Managing Director N K Maini said here. Last month the RBI announced it would extend Rs 5,000 crore in liquidity support to the Small Industries Development Bank of India (Sidbi) for one year.
“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 refinance of an amount of Rs 5,000 crore to Sidbi,” the apex bank had said in a notification on November 18. The refinance will be available for direct liquidity support to finance receivables, including for exports, to MSMEs through selected intermediaries, including banks, it said.
In a statement today, the state-run lender said its board, which met yesterday, considered the introduction of Special Refinance Facility.
The institution 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, it said.
