MUMBAI: The Reserve Bank of India (RBI) on Friday extended the enhanced unmarried borrower restrict facility for NBFC sector via any other three months to supply a lot needed liquidity beef up.
Earlier in October, the regulator had greater the one borrower restrict for NBFCs (no longer financing infrastructure) from 10 according to cent to 15 according to cent of capital price range.
This facility was once valid till December 31, 2018.
"In order to further facilitate banks to lend to NBFCs and HFCs as indicated above, it has been decided to extend the aforesaid facilities up to March 31, 2019," the RBI mentioned in a notification.
As a end result, a bank can give loans to the extent of 15 according to cent of its capital fund to a selected non-banking finance company (NBFC) or Housing Finance Company (HFC).
The transfer will lend a hand provide liquidity to NBFCs, which have come under power following collection of default via IL&FS group firms.
Earlier in October, the regulator had greater the one borrower restrict for NBFCs (no longer financing infrastructure) from 10 according to cent to 15 according to cent of capital price range.
This facility was once valid till December 31, 2018.
"In order to further facilitate banks to lend to NBFCs and HFCs as indicated above, it has been decided to extend the aforesaid facilities up to March 31, 2019," the RBI mentioned in a notification.
As a end result, a bank can give loans to the extent of 15 according to cent of its capital fund to a selected non-banking finance company (NBFC) or Housing Finance Company (HFC).
The transfer will lend a hand provide liquidity to NBFCs, which have come under power following collection of default via IL&FS group firms.
RBI extends enhanced single borrower limit facility till March 31
![RBI extends enhanced single borrower limit facility till March 31]()
Reviewed by Kailash
on
December 29, 2018
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