22 October, 2019
- Amendments to the External Commercial Borrowings (ECB) Policy – Rationalisation of End-Use Provisions
With a view to further liberalize the External Commercial Borrowings (‘ECB’) framework, RBI has, pursuant to the circular dated July 30, 2019 (‘ECB Circular’), introduced certain relaxations with respect to the end use for which Indian eligible borrowers are permitted to raise ECBs…..
- RBI Permits ARCs to Acquire Financial Assets from Other ARCs
RBI has published a circular allowing Asset Reconstruction Companies (‘ARCs’) to acquire financial assets from other ARCs. RBI, citing the changes made to the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, permitted the above, subject to the following conditions:….
- Bank Credit to NBFCs for On-Lending Eligible for Classification as ‘Priority Sector’
RBI by way of its circular dated August 13, 2019 addressed to all scheduled commercial banks has decided that bank credit to registered NBFC (other than micro finance institutions (‘MFI’)) for on-lending will be eligible for classification as ‘priority sector’ subject to the following conditions:….
- Revision of Limit for a Bank’s Exposure to a Single NBFC under the Large Exposures Framework
RBI on September 12, 2019 increased the limit for a bank’s exposure to a single Non-Banking Financial Company (excluding gold loan companies) under the ‘Large Exposures Framework’ to 20% of that bank’s eligible capital base from the existing limit of 15% of that bank’s eligible capital base….
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
