The second long term repo intended for NBFCs did not get subscribed by banks. The governor admitted that this means the banks are not willing to lend to smaller NBFCs. Now, with mutual funds dumping bonds, a solution is needed for NBFCs as soon as possible. Separately, India's MSMEs have reached a terminal stage due to the lockdown.
In this episode of Indianomics, experts suggest possible solutions and how we can make bank money go towards NBFCs and MSMEs.
To discuss this, Latha Venkatesh is in conversation with SS Mundra, former deputy governor of RBI, SS Mallikarjuna Rao, MD & CEO of PNB, Sunil Mehta, Chief of India Banks Association and Gokul Patnaik, chairman of Global Agrisystem.