Saturday, March 01, 2025 | 10:32 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

RBI Relaxes Rules For NBFCs To Securitise Loan Books

Image

Capital Market

The Reserve Bank of India (RBI) has relaxed rules for non-banking financial companies (NBFCs) to sell or securitise their loan books. In order to encourage non-banking financial companies (NBFCs) to securitise/assign their eligible assets, it has been decided to relax the minimum holding period (MHP) requirement for originating NBFCs, in respect of loans of original maturity above 5 years, to receipt of repayment of six monthly installments or two quarterly instalments (as applicable). This stood at one year earlier.

However, minimum retention requirement (MRR) for such securitisation/assignment transactions shall be 20% of the book value of the loans being securitised/20% of the cash flows from the assets assigned. The above dispensation shall be applicable to securitisation/assignment transactions carried out during a period of six months from the date of issuance of this circular. Other terms and conditions of the above referred directions remain the same, RBI said.

 

Powered by Capital Market - Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Nov 30 2018 | 12:41 PM IST

Explore News