Banks Permitted To Reckon Gsecs Up To Amount Equal To Their Incremental Outstanding Credit to NBFCs

The Reserve Bank Of India (RBI) has decided that, with immediate effect, banks will be permitted to also reckon Government securities held by them up to an amount equal to their incremental outstanding credit to NBFCs and Housing Finance Companies (HFCs), over and above the amount of credit to NBFCs and HFCs outstanding on their books as on October 19, 2018, as Level 1 HQLA under Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) within the mandatory SLR requirement.

This will be in addition to the existing FALLCR of 13% of NDTL, and limited to 0.5% of the bank's NDTL. The additional FALLCR will be available up to December 31, 2018. The single borrower exposure limit for NBFCs which do not finance infrastructure stands increased from 10% to 15% of capital funds, up to December 31, 2018.

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