(The Telegraph)
The Reserve Bank of India (RBI) on Tuesday announced a slew of rules for non-banking finance companies (NBFCs) relating to their large exposures, lending to directors and loans to the real estate sector apart from disclosures in their financial statements.The rules are part of the scale based regulation (SBR) which was announced in October, 2021. They will be applicable from October 1, 2022.
In a notification issued on Tuesday, the RBI said the exposure of NBFCs who come in the upper layer to any entity must not exceed 20 per cent of its capital base at all times. However, the board can allow an additional exposure of five per cent, up to 25 per cent.
In case of infrastructure finance companies, the exposure can stretch up to 30 per cent of their capital base.The ceiling for upper layer NBFCs will be 25 per cent for loans to a group of connected parties or firms and 35 per cent in infrastructure finance
