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The Reserve Bank of India, on Wednesday, unveiled the conditions for non-banking finance companies (NBFCs) and housing finance companies (HFCs) to be eligible for the government�s special liquidity scheme. The government has approved a scheme to improve the liquidly position of NBFCs or HFCs through a Special Purpose Vehicle (SPV) to avoid any potential systemic risks to the financial sector. To be eligible under the scheme, the following conditions should be met) NBFCs including microfinance institutions that are registered with the RBI under the Reserve Bank of India Act, 1934, excluding those registered as core Investment companies:

- Housing Finance Companies that are registered under the National Housing Bank Act, 1987.

-CRAR/CAR of NBFCs/HFCs should not be below .e regulatory minimum, i.e.15% and 12% respectively on March 31, 2019.

- The net non-performing assets should not he more than 6% as on March 31, 2019.

- They should have made net profits in at least one of the last two preceding financial years i.e. 2017-18 and 2018-19.