MUMBAI: The Reserve Bank of India (RBI) on Friday extended the enhanced single borrower limit facility for NBFC sector through any other three months to supply much needed liquidity strengthen.
Earlier in October, the regulator had higher the only borrower limit for NBFCs (no longer financing infrastructure) from 10 in line with cent to 15 in line with cent of capital price range.
This facility was legitimate 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 stated in a notification.
As a outcome, a bank can give loans to the extent of 15 in line with cent of its capital fund to a specific non-banking finance corporate (NBFC) or Housing Finance Company (HFC).
The move will lend a hand supply liquidity to NBFCs, which have come underneath pressure following collection of default through IL&FS staff firms.
Earlier in October, the regulator had higher the only borrower limit for NBFCs (no longer financing infrastructure) from 10 in line with cent to 15 in line with cent of capital price range.
This facility was legitimate 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 stated in a notification.
As a outcome, a bank can give loans to the extent of 15 in line with cent of its capital fund to a specific non-banking finance corporate (NBFC) or Housing Finance Company (HFC).
The move will lend a hand supply liquidity to NBFCs, which have come underneath pressure following collection of default through IL&FS staff firms.
RBI extends enhanced single borrower limit facility
![RBI extends enhanced single borrower limit facility]()
Reviewed by Kailash
on
December 30, 2018
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