NO-DEPOSIT TAKING NBFCS GET MORE TIME FOR CRAR

Non-Banking finance companies (NBFCs), which do not accept deposits, will now have more time to meet the Reserve Bank of India’s requirements on capital adequacy norms. The central bank has extended its earlier deadline for these players to meet CRAR (capital-to-risk- assets ratio) requirements. These companies now need to achieve a 12% CRAR ratio by March 2009 against RBI’s earlier circular, asking them to meet these levels with immediate effect. On similar lines, they need to reach a CRAR level of 15% by March 2010 as against the earlier date of April 1, 2009. The
central bank , which had imposed stringent guidelines for deposit- taking NBFCs few years ago, is
now bringing even non-deposit taking NBFCs under sufficient control due to underlying systemic risks.