Reserve Bank of India in its notification dated 22nd February, 2019, has decided to harmonise different categories of NBFCs.
The decision was first set out in Statement on Developmental and Regulatory Policies released on 7th February, 2019. Various categories of NBFCs have evolved over time pertaining to specific sector/asset classes and different Regulations have been put in place for each NBFC category. RBI has decided to harmonise major categories of NBFCs engaged in credit intermediation, viz., Asset Finance Companies (AFC), Loan Companies (LC), and Investment Companies (IC), into a single new category called NBFC – Investment and Credit Company (NBFC-ICC).
Subsequently, differential regulations relating to bank’s exposure to the three categories of NBFCs viz., AFCs, LCs and ICs stand harmonised. Vide Bank’s circular om “Risk Weights for exposures to NBFCs” dated 22nd February, 2019, these categories of NBFCs have been uniformly risk-weighted at 100%.
Click here for the notification.
Click here for the Bank’s Circular on Risk weights.
