Small Industries Development Bank of India (Sidbi) has received Rs 5,000 crore of refinance from the Reserve Bank of India (RBI) for a year to ease liquidity stress in the micro and small enterprises sector.
RBI said on November 18 that medium-sized firms will also get liquidity support under this plan. The refinance will be available for direct liquidity support to finance receivables, including export receivables, to micro and small enterprises by Sidbi.
RBI said in a statement that the facility will be available at the prevailing 14-day term repo rate for a period of 90 days. During this period, the amount can be flexibly drawn and repaid. At the end of the 90-day period, the drawal can also be rolled over.