NBFCs, Co-operate Credit Societies Now Allowed To Operate Will Minimum Staff

On 17 April, the Ministry of Home Affairs announced another update on services that will be allowed to function amid the nationwide lockdown that has been extended to 3 May.

As per the latest revision, non-banking finance companies (NBFCs) including Housing Finance Companies (HFCs) and Micro-Finance Institutions (MFIs) will be allowed to operate with bare minimum staff. Co-operate Credit Societies will also be allowed to operate, the ministry said in its circular.

These institutions are vital for credit and banking facilities in the rural sections of India. While these institutions were among those in the financial sector, there were also updates made to aid other economic activity in rural areas. Activities related to collecting, harvesting and processing of Minor Forest Produce/Non-Timber Forest Produce by scheduled Tribes and other forest dwellers in forest areas are now permitted.

Construction activity in rural areas related to water supply, sanitisation, laying/erection of power transmission lines and laying telecom optical fibre/cable and related activities are now permitted amid the lockdown.