Banks are allowed to transfer assets through loan participation agreement


The International Financial Services Centers Authority through circular dated December 30, 2020 has directed implementation of Transfer of assets through loan participation agreement. Bank units are allowed to undertake transfer of assets bilaterally through the means of a standard loan participation agreement such as Master Risk Participation Agreement (MRPA). Bank units may execute such agreement to sell or buy a single asset or a part of such asset or a portfolio of such assets to/from other Banks, Financial Institutions , persons resident in India and persons resident outside India.

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