RBI/2011-12/463
DNBS.PD/ CC.No.263 / 03.10.038 /2011-12

March 20, 2012

All NBFCs (excluding RNBCs)

Dear Sir,

'Non Banking Financial Company-Micro Finance Institutions' (NBFC-MFIs) - Provisioning Norms- Extension of time

A new category of NBFCs namely 'Non Banking Financial Company-Micro Finance Institutions' (NBFC-MFIs) was introduced vide DNBS.CC.PD.No.250/03.10.01/2011-12 dated December 02, 2011, which also contained guidelines on asset classification and provisioning norms to be adhered to by the MFIs with effect from April 01, 2012. Taking into account the difficulties faced by MFI sector and the representation received by the Bank from them, it has been decided to defer the implementation of asset classification and provisioning norms for NBFC-MFIs to April 01, 2013.

2. NBFC-MFIs are, however, required to comply with the other regulations laid down in the circular dated December 02, 2011.

Yours faithfully,

(Uma Subramaniam)
Chief General Manager in Charge