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) has issued guidelines on exposure norms and statutory / other restrictions for primary (urban) co-operative banks (UCBs). What is exposure? Exposure shall include both credit exposure (Loans and Advances) and investment exposure (Non- SLR securities). What are the exposure ceiling for individual / group borrowers? Primary (urban) co-operative banks (UCBs) shall fix exposure ceiling in relation to their Tier-I capital. Borrower Exposure ceiling Individual borrower 15% of Tier-I capital Group of connected borrowers / parties 25% of Tier-I capital What is the thresholds for value of loans? The definition of small value loans has been revised as below –  Extant guidelines Revised guidelines (updated on February 24, 2025) UCBs shall have at least 50% of their aggregate loans and advances comprising small value loans i.e., loans of not more than ₹25 lakh or 0.2% of their...