RBI lists rules for provisioning by NBFCs on advances to hsg, realty, SME

Rules apply to 'upper layer' of finance firms specifically identified by the central bank for enhanced regulatory requirements.

The Reserve Bank of India (RBI) on Monday said that non-banking financial companies (NBFCs) in the upper regulatory layer will have to maintain provisions for standard advances based on category of assets like SME, real estate, and housing loans, including those given at teaser rates. This is seen as a step to prescribe bank-like regulatory norms for finance companies.

The individual housing loans and loans to small and micro enterprises (SMEs) will attract provision of 0.25 per cent. NBFCs will have to maintain 2 per cent provision for housing loans extended at a teaser rate. This provision will decrease to 0.40