FIDC Urged Maharashtra Govt to Allow Partial Functioning of NBFCs

The Finance Industry Development Council (FIDC) has requested the Maharashtra government to allow partial functioning of RBI-approved non-banking financial companies (NBFCs) amid the restrictions imposed to tackle the Covid surge.

In a letter to the state Chief Secretary, the industry body said that a large number of deposit holders and debenture holders are senior citizens who depend on the interest on fixed deposit and debentures paid on monthly or quarterly basis. Any delay in servicing them will upset their livelihood, it added.

"We make an appeal to exempt RBI-Registered NBFCs under Clause 5 (a) of the said Order date 4th April 2021 and issue necessary Advisory that the essential operations of non-banking financial companies in Maharashtra are continued on par with banking operation and to facilitate the essential staff to provide the essential services to our stakeholders," it said.

The letter by FIDC Director-General Mahesh Thakkar said that keeping in mind the interest of the stakeholders, in particular fixed deposit holders, debenture holders, employees, institutions and banks, it is necessary that certain essential staff may be permitted to carry out the essential operations, in small number and at staggered timings while following social distancing.

Similar exemption was extended to NBFCs by Union Ministry of Home Affairs, through its order dated April 16, 2020, Thakkar noted.