The government on Friday set in motion the process of providing liquidity support up to Rs 25,000 crore to cash-strapped Non-Banking Finance Companies (NBFCs) to enable them to pay existing liabilities, as was announced in the second stimulus package to spur sagging economic growth.

According to the decision approved by the Cabinet here, a Stressed Asset Stabilisation Fund, set up for acquiring the stressed assets of IDBI, would function as a Special Purpose Vehicle (SPV) to provide money to non-deposit taking systemically important NBFCs.