Friday, December 15, 2006

NEW RBI NORMS MAY BE EASIER ON LOCAL NBFCs

Reserve Bank of India (RBI) recently has proposed easing of lending by banks to NBFCs which are as follows:

  • Banks can lend to a single NBFC up to 10% of capital funds.
  • NBFCs to comply with consolidated prudential regulations.
  • Limit capped at 40% of bank’s capital funds for all NBFCs lending.

There are 148 NBFCs with a total asset base of Rs. 1,72,000 crore as of October, 2006.

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