RBI Updates : Bank Finance to Non-Banking Financial Companies (NBFCs)

RBI vide Master Circular dated 1st April 2022 give details regarding Bank finance to non - banking Financial Companies (NBFCs) Purpose To lay down the Reserve Bank of India's regulatory policy regarding financing of NBFCs by banks.

Applicability To all Scheduled Commercial Banks (excluding Regional Rural Banks).

The circular include Bank finance to NBFC registered with RBI Bank finance to NBFC not requiring Registration Activities not eligible for bank credit Bank Finance to Factoring Companies

Other Prohibitions on Bank Finance to NBFCs

Prudential ceilings for exposure of banks to NBFCs

Restrictions regarding investments made by banks in securities / instruments issued by NBFCs

For the details: View Circular