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Special liquidity facility for SFBs extended till Dec-end

Mumbai, Oct 8 (IANS) 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.

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.

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.