The Ministry of Home Affairs (MHA) in its latest order allowed non-banking financial companies (NBFCs) including housing finance companies (HFCs), microfinance institutions (NBFC-MFIs) and cooperative credit societies from the financial sector in a bid to function during the lockdown period with bare minimum staff.
This will be applicable to the mentioned financial institutions in all states and union territories (UTs).
The development comes after NBFCs and MFIs approached the government repeatedly to allow them to function like banks were. During Phase 1 of the lockdown, from the financial sector, only banks were allowed to function. This was issued as per the revised guidelines for lockdown announced by Prime Minister Narendra Modi on April 14. The lockdown has now been extended nationwide to May 3, with relaxations from April 20 in areas that report no new COVID-19 cases.