CURRENT AFFAIRS

Detailed explanation-1: -Non-banking finance company (NBFC) Manappuram Finance Thursday said it has secured a debt funding of Rs 695 crore from NABARD that will be used for priority sector lending.

Detailed explanation-2: -The company is notified as a Non-Banking Finance Company (NBFC) by RBI. The main objective of the company is to provide credit for promotion, expansion and commercialization of enterprises in agriculture, allied and rural non-farm activities.

Detailed explanation-3: -NABARD has supported Financial Literacy efforts through various initiatives keeping in mind its importance to augment demand for financial services, especially for those offered on the digital platform.

Detailed explanation-4: -The Reserve Bank has been given the powers under the RBI Act 1934 to register, lay down policy, issue directions, inspect, regulate, supervise and exercise surveillance over NBFCs that meet the 50-50 criteria of principal business.

Detailed explanation-5: -Financial Inclusion Fund (FIF). 1.2 The overall corpus of the new FIF will be Rs. 2000 crore. Contribution to FIF would be from the “interest differential” in excess of 0.5% on RIDF and STCRC deposits on account of shortfall in priority sector lending (as notified by RBI from time to time) kept with NABARD by banks.