NBFCs' EXCESS DEPOSITS SHOULD BE REGULARISED: RBI
Article Abstract:
The Reserve Bank of India (RBI) has asked the non-banking finance companies (NBFCs) to regularise the excess public deposits which are likely to arise because of downgrading of the company through repayment when such deposits mature. These companies have been barred from accepting fresh public deposits until the quantum of such deposits held by them falls below the ceiling fixed. The NBFCs can renew the maturing public deposits in such a way that in case of downgrading of the company, the excess amount can be repaid in 3 years from the date of the downgrading and in case of excess arising out of regulatory ceiling, by December 31, 2001. The Reserve Bank of India has fixed a ceiling for the NBFCs on investments in land, buildings and unquoted shares according to prudential norms. The NBFCs are not to invest more than 10 percent of their owned funds in lands and buildings. The ceiling on investment in unquoted shares of companies other than their own group firms or subsidiaries has been fixed at 10 percent of their owned funds for equipment leasing and hire purchase companies and 20 percent for loan and investment companies. (tsm)
Comment:
The Reserve Bank of India (RBI) has asked the non-banking finance companies (NBFCs) to regularise the excess public deposits which are likely to arise because of downgrading of the company through repayment when such deposits mature.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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BANKS JOIN NBFCs' INFO RADAR TO TRACK DEFAULTERS
Article Abstract:
Many banks in the retail, car and consumer finance businesses including foreign banks have started accessing the credit information network of non banking finance companies (NBFCs). The move is aimed at identifying the defaulters as the economic sluggishness has resulted in an increase in defaulters. The Association of Leasing and Financial Services Ltd (ALFS) has set up a network for knowing the details of repayments made by member companies. The network is being put in place following an order by the ALFS. (ag)
Comment:
India: Many bks in retail, car & consumer finance bsns incl foreign bks start accessing credit info ntwk of non-bkng finance cos
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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