Brief Overview:
The RBI through the Statement on Developmental and Regulatory Policies issued on 6th October 2023, has indicated introduction of regulatory measures, inter alia relating to Projects under implementation Credit Concentration Norms for NBFC in the Middle Layer (ML) and Base Layer (BL).
Technical Details:
RBI is expected to introduce comprehensive regulatory framework applicable for all regulated entities, for the projects under implementation. This is expected to strengthen the extant regulatory framework and to harmonise the instructions across all regulated entities on the subject.
It is decided to permit NBFCs (ML) and NBFCs (BL), to offset their exposures with eligible credit risk transfer instruments. The instructions to be issued will harmonize the aforesaid norms among all three layers of NBFCs.
For further details, please see:
Statement on Developmental and Regulatory Policies:
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56503
For any queries/clarifications, please feel free to ping us and we will be happy to chat:
● Mr. Ankit Sinha (ankit.sinha@jclex.com)
● Mr. Saurabh Sharma (saurabh.sharma@jclex.com)
● Ms. Rupul Jhanjee (rupul.jhanjee@jclex.com)
Kejal Soni, Trainee, Banking & Finance at Juris Corp has also contributed to this publication.
