RBI to rescue by relaxing Bank rating norms ASAP!! 

Banks have been offered a liquidity support of Rs.50,000 crores by RBI for on-lending to NBFCs and MFIs. Out of this, Rs.5000 crore was earmarked for Small NBFC MFIs, those having assets size of less than Rs.100 crores outstanding. Even though the funds have been earmarked, it will not reach the most of the small MFIs as this funding will be only accessible to MFIs with  BBB bank rating, which most of the small MFIs may not have this investment grade rating. In Tamil Nadu, out of more than 40 small MFIs, only one MFI is having BBB rating. Moreover, RBI has asked the MFIs to give a 3 months moratorium to its clients, but many banks have not extended the same moratorium to MFIs.