[INDIAN ECONOMIC NEWS] Good morning, everyone. I¡¯m Kim suhyeon staff of Kamagroup Pvt. Ltd.
Here I have an important Indian economic news to share with you which is as undermentioned.

The liquidity crunch -
The crisis was in the financial markets w here post-IL&FS funds dried up as corporates pulled out their money f rom mutual funds and put it I nto banks. Banks had ceded some of their lending space to NBFCs during demonetisation in 2016. But in the few weeks before Diwali, when about Rs 50,000 crore cash withdrawals f rom the financial markets took place, NBFCs¡¯ funding of consumption items, including consumer dura bles, and autos, vanished.

It was a crisis of confidence because we were not a ble to protect our institutions and this shook the financial markets resulting in a liquidity crisis, say the members.

Read more at:
https://economictimes.indiatimes.com/industry/banking/finance/banking/in-the-wake-of-nbfc-crisis-india-needs-a-new-design-for-finance/articleshow/66962988.cms

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