In order to help India fuel its economic growth, non-banking financial companies (NBFCs) must sub-lend the money they get from banks to their customers, Minister of State for Finance, Anurag Singh Thakur said on Thursday.
"There is a need for further transmission of the credit from NBFCs to the industry especially by micro, small and medium enterprise (MSME) sector. I have spoken to the banks and requested them to ensure faster and greater disbursement of credit to ensure liquidity in the hands of NBFCs," said Anurag Thakur at an Assocham NBFC event here.
"Having said that, I expect NBFCs to lend money that is received from banks because we take the feedback from the ground as well. So, my humble request is that money you receive, lend that money and help the government to achieve our target and revive this cyclical downturn," Thakur said.
Talking about the recently-held loan melas across 250 districts in the country, he said not many NBFCs were spotted there, which prompted him to reach out to the finance secretary to convey that it was very important to have NBFCs on board as they play a crucial role in the nation building process and in the growth of the economy.
"...To reach the USD 5-trillion-economy mark, NBFCs have to play a very important role."
He also said the industry needs to have right perception and sentiment in the market as he sought the help of the MSME sector in reaching out to the common man, and fuel country's economic growth.