FIDC seeks permission for partial functioning of RBI registered NBFCs in Maha

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Mumbai, Apr 5 (PTI) With partial lockdown announced in Maharashtra, Finance Industry Development Council (FIDC) has written to the state government requesting permission for partial functioning of RBI-registered non-banking finance companies (NBFCs).

On Sunday, the state government announced night curfew during weekdays starting 8 pm and a complete lockdown in the weekends, to deal with the rising COVID-19 cases. The restrictions will be there till April 30.

FIDC, a representative body of non-banking finance companies (NBFCs), in a letter, urged the state government to allow at least 30 per cent of staff at NBFCs to work on a rotational basis to meet the financial requirement of the lower and middle income customers.

“Keeping in mind the interest of our stakeholders, in particular fixed deposit holders, debenture holders, employees, institutions and banks, it is necessary that certain essential staff (of NBFCs) may be permitted to carry out the essential operations, in small number and at staggered timings while following social distancing,' the letter said.

It said NBFC customers are primarily small truck or commercial or passenger vehicle operators, small 3-wheeler operators, farmers, and MSMEs who visit branches for repayment of loans.

The industry body said in view of the special circumstances, it is necessary that essential staff of NBFCs may be required to be physically present at the branch offices for operations like collections and depositing cash in banks.

“If at least 30 per cent of our staff are permitted to be operative on rotation basis, we can cater to the rising financial requirements of a larger segment of lower and middle income customers during this challenging time,” the letter said.

It said that banks are exempted from closure of branches. Similarly, insurance companies, stock markets and its operators, mutual funds are treated at par with banks.

“Our operations are akin to bank operations. In fact, NBFCs are the only part of the financial sector that has been left out,” the letter said.

The body requested the state government to issue necessary advisory so that the essential operations of NBFCs continue on par with banks. PTI HV MR