Current Affairs - Miscellaneous - Discussion

Small Industries Development Bank of India (SIDBI) has launched a pilot scheme for fintech Non Banking Financing Companies (NBFCs) to give financial assistance up to Rs. 10 crore in order to boost digital lending.SIDBI has set the credit exposure limit to a new fintech NBFC to 30% of the Net-Owned Fund(NOF) of the new fintech NBFC, with the maximum capital of Rs. 10 crores.The new fintech NBFCs must hold in trust the underlying securities or receivables on behalf of SIDBI.The minimum fee of 0.075% to 0.25% of the sanctioned amount along with applicable taxes is charged by the development bank.