 "A Reserve Bank of India (RBI) logo is seen at the gate of its office in New Delhi | Photo: Reuters")
In order to encourage non-banking financial companies (NBFCs) to securitise more of their assets and improve liquidity, the Reserve Bank of India (RBI) on Thursday halved the minimum holding period of their loans of above five years.
According to the revised norms, loans of original maturity of more than five years can be securitised after receiving the repayment of six-month instalments or two quarterly instalments.
Earlier the norm was to ensure that the loans are serviced for 12 monthly instalments or four quarterly installments.
An NBFC originating a loan requires to hold it for a certain period on its books before selling it
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