Current Affairs

SIDBI Launches Scheme to extend Financial Assistance

Small Industries Development Bank of India (SIDBI) launched a pilot scheme to extend financial assistance of up to Rs 10 crore to new-age fintech non-banking finance companies (NBFCs) engaged in financing small businesses and other income-generating activities.
SIDBI Launches Scheme to extend Financial Assistance

One must know:

  • SIDBI set the exposure cap for lending to a single new-age fintech NBFC at 30% of NOF of the new-age fintech NBFC, subject to a maximum cap of Rs 10 crore.

About Fintech NBFCs:

  • Fintech NBFCs are digital loan companies.
  • They leverage information technology to provide fast and convenient access to funding.
  • Reserve Bank of India-registered new-age fintech NBFCs have to meet prescribed parameters, including:
    • Minimum capital risk-weighted assets ratio of 15%
    • Non-performing assets less than or equal to 4%
    • Minimum net-owned fund (NOF) of Rs 20 crore and Minimum asset size of Rs 50 crore
    • At least two audited annual reports, positive net worth and leverage ratio within 5:1

Question:

Q. Who has launched a pilot scheme to extend financial assistance of up to Rs 10 crore to new-age fintech non-banking finance companies (NBFCs)?
a. Small Industries Development Bank of India (SIDBI)
b. Small Businesses Development Bank of India (SBDBI)
c. Rural Industries Development Bank of India (RIDBI)
d. Urban Industries Development Bank of India (UIDBI)
SIDBI Launches Scheme to extend Financial Assistance SIDBI Launches Scheme to extend Financial Assistance Reviewed by Neha Verma on May 17, 2019 Rating: 5

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