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- The National Housing Bank(NHB) has decided to infuse an additional Rs 10,000 crore into housing finance companies(HFCs) to improve liquidity in the sector.
- This move would enable the HFCs to provide individual loans for affordable housing.
- The government has also approved the budget proposal on one-time partial credit guarantee to public sector banks for purchase of high-rated pooled assets of financially sound NBFCs.
- Further,the Finance Minister will also be holding an inter-ministerial meeting on issues related to Micro, Small and Medium Enterprises (MSMEs).The meeting will consider various recommendations given by Expert Committee headed by former SEBI Chief UK Sinha.
- The committee has suggested several measures including doubling of collateral-free loans for MSMEs,self help groups and borrowers falling under the Mudra Yojna to Rs 20 lakh.It has also suggested creating a stressed asset fund of Rs 5,000 crore to protect the sector from distress caused by external circumstances.
- The National Housing Bank (NHB) was set up in 1988 under the National Housing Bank Act,1987.NHB is an apex financial institution for housing.
- Its objective is to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith.
