25 YEARS IN INDIA: LEADING WITH IMPACT slide image

25 YEARS IN INDIA: LEADING WITH IMPACT

Key Regulatory Measures (III/III) Recent Trends ā˜ Jan 22 Framework for Facilitating Small Value Digital Payments in Offline Mode Implementation of 'Core Financial Feb 22 Services Solution' by NBFCs Mar 22 An offline payment, transaction which does not require internet or telecom connectivity to take effect The CFSS, as adopted by banks shall provide for seamless customer interface in digital offerings and transactions relating to products and services with anywhere, enable integration of NBFCs Regulatory Framework for Microfinance All collateral-free loans, for households having annual income up to 3,00,000, shall be Loans considered as microfinance loans Apr 22 Disclosures in Financial Statements $ Apr 22 May 22 Jun 22 NBFCs are required to make disclosures in their financial statements in accordance with existing prudential guidelines, applicable accounting standards, laws, and regulations RBI tightens NBFC lending and disclosure Mid layer and Upper layer NBFCs shall not lend more than Rs. 5 crores to directors or their guidelines PSL by Commercial Banks to NBFCs and SFBS to NBFC-MFIS Provisioning for Standard assets by NBFC-UL related firms Bank credit to NBFCs for on-lending will be allowed up to an overall limit of 5% of an individual bank's total priority sector lending (PSL) in case of commercial banks and 10% for SFBs to lend to NBFC-MFIs and other MFIs NBFCs in the upper regulatory layer to maintain provisions for standard advances based on category of assets Source: Reserve Bank of India 49 Copyright 2020 by Boston Consulting Group. All rights reserved.
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