RBI modifies certain regulations for NBFCs - আরবিআই - Reserve Bank of India
RBI modifies certain regulations for NBFCs
Detailed regulations were issued on 2nd January 1998 to ensure orderly functioning of the Non-Banking Financial Companies (NBFCs) and for protection of interest of the depositors. Since then, in response to suggestions received from various sections, RBI has held detailed consultations with leading NBFC associations, financial experts and other professionals in order to remove any genuine problems that might arise in the implementation of the guidelines issued on January 2, 1998. In the light of these discussions, RBI has decided to modify some of the regulations. The modifications are as under :
The requirement of rating and level of public deposits for loan and investment companies remains unchanged. Time for regularising the excess deposits Downgrading of credit rating 4. In case the ceiling on public deposits gets reduced as a consequence of downgrading of rating, the resultant excess deposits should be repaid/regularised within a period of 12 months. Prudential norms modified 5. The provisioning requirements for hire purchase/leased assets have been modified. While loan and other credit facilities shall continue to be classified as NPAs for each borrower as per existing norms, the lease and hire purchase transactions may be classified independently on the basis of record of recovery in each account. In other words, in respect of borrowers having multiple lease/hire purchase facilities, NPAs will be calculated by taking into account the default in respect of relative account/s only. Net owned fund 6. For the purpose of deposit acceptance and prudential norms regulations (including capital adequacy and credit/investment concentration norms), the definition of net owned fund has been modified to include preference shares which are compulsorily convertible into equity. Disclosure requirements 7. The NBFCs are now required to disclose the level of their rating and the name of the rating agency in their application forms for public deposits. 9. Necessary notifications are being issued separately which will be available on Internet website /en/web/rbi. (Alpana Killawala) Press Release : 1997-98/682 |