RBI relaxes compliances for NBFCs
RBI relaxes compliances for Non-profit NBFCs.
RBI issues notification on Review of Minimum Investment Grade Credit Ratings for Deposits of NBFCs.
As per the earlier notification dated in 2016, non-banking finance companies with net owned funds of 25 lakh rupees and above need to obtain a minimum investment grade or other specified credit ratings for fixed deposits from any one of the approved credit rating agencies at least once a year to accept public deposits.
Modified Interest Subvention Scheme for Short Term Loans for Agriculture and Allied Activities
Government of India has approved the continuation of the Interest Subvention Scheme (ISS) with modifications for the financial year 2021-22.
RBI notifies master direction for issuance of credit cards.
These directions cover the general and conduct regulations relating to credit, debit and co-branded cards which shall be read along with prudential, payment and technology & cyber security related directions applicable to credit, debit and co-branded cards, as issued by the Reserve Bank.
RBI extends the guidelines on legal entity identifier (LEI) to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs).
Borrowers who fail to obtain LEI codes from an authorized Local Operating Unit (LOU) shall not be sanctioned any new exposure nor shall they be granted renewal/enhancement of any existing exposure.
RBI notifies Large Exposure Framework (LEF) for NBFCs in the Upper Layer.
An upper-layer NBFC must not have an exposure higher than 20 percent of its capital base to any entity, and its board can approve an additional 5 percent exposure limit to take it to 25 percent.
RBI mandates NBFC to make additional disclosure in their financial statements.
The additional disclosure requirements are in accordance with the Scale Based Regulation and the disclosure requirements applicable to lower layers of NBFCs will be applicable to NBFCs in higher layers. These guidelines shall be effective for annual financial statements for year ending March 31, 2023, and onwards.
RBI notifies regulatory restriction on loans and advances in respect of NBFCs.
The proposals for credit facilities of an amount less than Rupees five crore to these borrowers may be sanctioned by the appropriate authority in the NBFC under powers vested in such authority, but the matter should be reported to the Board.
RBI revises Base III Framework on Liquidity Standards.
RBI has decided to permit banks to reckon Government securities as Level 1 High Quality Liquid Assets (HQLA) under Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) within the mandatory Statutory Liquidity Ratio (SLR) requirement up to 16 per cent of their NDTL.
RBI increases market trading hours.
The trading hours for Commercial paper and Certificates of Deposit, Repo in Corporate Bonds, Government Securities (Central Government Securities, State Development Loans and Treasury Bills) Foreign Currency (FCY)/Indian Rupee (INR) Trades including Forex Derivatives and Call/notice/term money will be 10.am to 3.30 pm.
