RBI's liquidity boost for NBFCs, relaxes asset securitisation norms
Reserve Bank of India(RBI) on Thursday relaxed rules for non-banking financial companies (NBFCs) to sell or securitise their loan books, in a bid to ease persistent stress in the sector. NBFCs can now securitise loans of more than five-year maturity after holding those for six months on their books, the Reserve Bank of India said. Earlier, they had to hold these assets for at least one year, a banker said. However, the relaxation on the minimum holding period will be allowed when the NBFC retains 20 percent of the book value of these loans, the RBI said.
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