Relief for NBFCs & HFCs: RBI eases liquidity norms for banks
The Reserve Bank of India (RBI) on Friday eased liquidity norms for banks. With immediate effect, banks will be permitted to reckon government securities held by them up to an amount equal to their incremental outstanding credit to Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) over an amount of credit to NBFCs and HFCs outstanding on Friday, i.e. October 19.
The single borrower exposure limit for NBFCs, which do not finance infrastructure, stands increased from 10 per cent to 15 per cent of the capital funds up to December 31, 2018.
(Further details awaited)