RBI has issued revised Credit/Investment Concentration Norms. In case of NBFC ML, Exposure to the Government of India and State Governments which are eligible for zero percent risk weight under capital regulations applicable to NBFC3 and exposure where the principal and interest are fully guaranteed by the Government of India3 shall be exempt from credit/investment concentration norms.
NBFC-BL shall put in place an internal Board approved policy for credit/investment concentration limits for both single borrower/party and single group of borrowers/parties. In case of NBFC UL, to be eligible as a credit risk transfer instrument, guarantees shall be direct, explicit, irrevocable and unconditional.
