 "lending")
The Reserve Bank of India’s curb on securitising loans having residual maturity of less than 365 days may hit the sale of short-term advances like micro-finance, personal loans and gold loans for a while, rating agencies said on Thursday.
The change could make a certain portion of loan books ineligible for securitisation, or converting an asset into marketable securities for raising cash by selling investors. The RBI amended its regulation on Securitisation of Standard Assets on December 5, 2022.
CRISIL Ratings said in a statement the curb would limit the issuance of pass-through certificates (PTCs) backed by shorter tenure loans
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