NEW DELHI: In the backdrop of the ongoing liquidity crisis of non-banking financial companies (NBFCs) and RBI’s reluctance to relax the Prompt Corrective Action guidelines, the government will come up with a recapitalisation plan in a week.
According to officials of the Finance Ministry, the Department of Financial Services (DFS) is working on the plan, which includes cash infusion in public sector banks, ahead of its schedule. It will also prepare a detailed roadmap for pumping liquidity into the NBFCs.
“There is enough liquidity in the system and there is no need to panic.
We are working on the roadmap for the capital infusion and it will be ready within a week. We may advance the schedule for capital infusion in banks,” a senior DFS official told TNIE.