Inquisitive Mind

Reserve Bank of India (RBI) has revised the list of applicable returns to be filed by supervised entities. This article covers the list of the returns applicable to Non-Banking Financial Companies (NBFCs). Which returns shall be filed by NBFCs? All Supervised Entities (SEs) are required to submit certain supervisory returns to Reserve Bank of India (RBI) as per various directions / circulars / notifications issued by RBI from time to time. The list of returns applicable to Non-Banking Financial Companies [excluding Housing Finance Companies (HFCs)] and all Asset Reconstruction Companies (ARCs) are as below – NBFCs in Base Layer Name of Return Periodicity Reference date Timeline for Return Submission DNBS02 – Important  Financial Parameters  (NBFCs – BL)* Quarterly Last day of the Calendar Quarter (i.e., March 31st, June 30th, September 30th, and December 31st) Within 21 days from the Reference Date...

Reserve Bank of India (RBI) has updated the credit / investment concentration norms and credit risk transfer guidelines for Non-Banking Financial Companies (NBFCs). How are credit / investment concentration norms and large exposures framework applicable to NBFCs? Type of NBFC Guidelines applicable NBFC-Base Layer (NBFC-BL) and NBFC-Middle Layer (NBFC-ML) Credit / investment concentration norms NBFC-Upper Layer (NBFC-UL) Large Exposures Framework (LEF) How shall exposure be computed? Aggregate exposure to a counterparty comprising both on and off-balance sheet exposures are calculated based on the method prescribed for capital computation i.e.,  On-balance sheet exposures are reckoned at the outstanding amount. Off-balance sheet exposures are converted into credit risk equivalent by applying the credit conversion factor prescribed under capital requirements.  What credit / investment concentration norms are applicable to NBFC...

Reserve Bank of India (RBI) is observing financial literacy week from February 26 to March 01, 2024. Financial Literacy and Financial Education Organization for Economic Co-operation & Development (OECD) defines ‘financial literacy’ as a combination of financial awareness, knowledge, skills, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being.  OECD defines ‘financial education’ as the process by which financial consumers / investors improve their understanding of financial products, concepts and risks and through information, instruction and / or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help and to take other effective actions to improve their financial well-being. Financial Literacy Week (FLW) Reserve Bank of India (RBI) has been observing Financial Literacy Week (FLW) every year since 201...