Recognising the persisting uneven impact of the pandemic on small business units, micro and small industries, and other unorganised sector entities, the RBI on Friday extended a special liquidity facility given to Small Finance Banks (SFBs) for onward lending to small borrowers.
The tenure of the three-year special long-term repo operations (SLTRO) facility of Rs 10,000 crore at the repo rate given to SFBs has been extended to December 31, 2021.
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The SLTRO, made available to SFBs in May 2021 to be deployed for fresh lending of up to Rs 10 lakh per borrower, was scheduled till October 31, 2021.
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SFBs have been playing a prominent role in providing last mile credit to individuals and small businesses. The SLTRO will now now be available on tap to ensure extended support to small entities.
