RBI extends enhanced single borrower limit facility till March 31
Team Udayavani, Dec 29, 2018, 4:53 AM IST
Mumbai: The Reserve Bank of India Friday extended the enhanced single borrower limit facility for NBFC sector by another three months to provide much-needed liquidity support.
Earlier in October, the regulator had increased the single borrower limit for NBFCs (not financing infrastructure) from 10 per cent to 15 per cent of capital funds.
This facility was 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 said in a notification.
As a result, a bank can give loans to the extent of 15 per cent of its capital fund to a particular non-banking finance company (NBFC) or Housing Finance Company (HFC).
The move will help provide liquidity to NBFCs, which have come under pressure following series of default by IL&FS group companies.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
India not reaping benefits of democratic dividend: Raghuram Rajan
Markets slump for third day on fears of escalating tensions in Middle East; IT stocks drag
Tesla is planning to lay off 10 of its workers after dismal 1Q sales, multiple news outlets report
With just Rs 150 base airfare take a 50-minute flight
Byju’s founder Raveendran to take over firm’s daily operations after CEO Mohan’s resignation
MUST WATCH
Latest Additions
Youth detained for Facebook threat to BJP MLA in Nashik
NE’s integration with rest of India happened under Modi govt: BJP chief Nadda
Congress spokesperson booked for alleged hate speech
BJP files complaint with EC against Sowmya Reddy, others for alleged violation of poll code
Siddaramaiah slams BJP candidate for visiting house of alleged police recruitment scam kingpin