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RBI may meet NBFCs this month for finalisation of norms

Apex bank had released the final draft guidelines on NBFCs, based on the recommendations of Usha Thorat committee report

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Press Trust of India Mumbai
Last Updated : Jan 29 2013 | 2:34 PM IST

The Reserve Bank is likely to meet the representatives of non-banking finance companies (NBFC) this month for consultation before finalising the guidelines for the sector.

"The central bank is likely to hold a couple of meetings in January before finalising the guidelines with regard to NBFCs," an industry source said.

The apex bank had released the final draft guidelines on NBFCs, based on the recommendations of Usha Thorat committee report, last month.

The report proposes revision of NPA recognition norm to 90 days (against the existing 180 days), along with adoption of higher provisioning requirements for NPAs.

It also proposes 10% capital adequacy ratio (CAR) for most of the NBFCs and increase in risk weights for some other asset classes.

Referring to the guidelines, another source in the NBFC industry said the sector has already given representations.

"We have already given our feedback to the central bank and pointed out the difficulties with regard to the treatment of NBFCs on par with banks in some of the regulations," the source said.

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First Published: Jan 02 2013 | 9:01 PM IST

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