'Trust & confidence' in PSBs & NBFCs to rise: IBA chief

New Delhi: To encourage PSBs to lend to NBFCs, Government's guarantee provision to PSU banks for purchase of high rated pooled assets of financially sound NBFCs has been announced. This will improve the "trust" factor and confidence in both segments. Budget has also proposed to initiate steps to account holders to have control over deposits of cash by others in their account. Other measures for NBFCs like permitting them to participate in the TReDs platform directly, removal of creating Debenture Redemption Reserve (DRR) for NBFCs to raise funds in public issue, parity in the treatment of NPAs of NBFCs with Commercial banks would help NBFC sector which is facing challenging times for some time now.