RBI asks Banks to utilise SRF to benefit micro, small enterprise

Mumbai, Nov 19 (UNI) The Reserve Bank of India (RBI) has encouraged banks to use their Special Refinance Facility to extend finance to micro and small enterprises.

RBI, in a communciation to banks, today recalled its November 3 circular on the SRF, permitting all scheduled commercial banks to secure refinance from RBI upto one per cent of each bank's net demand and time liabilities (NDTL) as on October 24 at the repo rate under the liquidity adjustment facility (LAF) up to a maximum period of 90 days.

The measure is one of the steps taken by the Apex Bank to give a boost to credit flow to small and micro enterprises.

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