Microfinance Current Affairs - 2020

RBI cuts Reverse Repo rate to 3.75%, Rs 50,000 crores for LTRO 2.0

On April 17, 2020, the Reserve Bank of India announced a slew of measures after GoI extended the lock down till May 3, 3030. The Apex bank cut the reverse repo rate to 3.75%. It cut the repo rate to 4.4% from 5.15%. Also, the central bank has announced Rs 50,000 crore for Long Term Repo Operation (LTRO).

Highlights

RBI has eased the Liquidity Coverage Ratio from 100% to 80%. The LCR is the assets held by the banks to make sure its ongoing ability to meet short-term obligations are fulfilled.

The RBI will also provide Rs 50,000 crore special finance assistance to institutions such as SIDBI, NABARD, NHB. This is being done as these institutions are not able to raise fresh resources from the market due to the lock down.

LTRO 2.0

This time the LTRO has been named LTRO 2.0 because, this time the LTRO is to focus on liquidity needs of microfinances and NBFC. Earlier the LTRO went largely to the public sector undertakings and larger corporations.

EKAM Fest: Event to Promote craftsmanship and products of Divyang entrepreneurs

A week-long festival called “EKAM FEST” was organized to promote the products of Divyang artisans and entrepreneurs. More than 80 Divyang entrepreneurs and artisans participated in the event.

Highlights

The event focuses to promote knowledge and entrepreneurship of Divyang Community. It also aims to market their opportunities. The event was organized by NHFDC (National Handicapped Finance and Development Corporation). The NHFDC also launched the NHFDC Swavalamban Kendra (NSK), an initiative to establish micro skill training centre for Divyangs

NHFDC

The NHFDC operates under Ministry of Social Justice and Empowerment. It was established in 1997. The Company provides financial assistance to divyangs and persons with disabilities. Currently it is implementing Vishesh Microfinance Yojana

Vishesh Microfinance Yojana

Under the scheme, NHFDC finances income generating schemes of Disabled persons. This is being done by signing agreement with Public Sector Banks, Regional Rural Banks and other financial institutions. The main objective of the scheme is to reach out unbanked population and promote inclusive livelihood.