The credit rating agencies have suggested to the Reserve Bank of India that non-banking finance companies with an investment grade rating should be allowed to raise resources through fixed deposits.
Under the new regulations issued by the RBI, only NBFCs with a rating of A and above can issue fixed deposits.
At a meeting here yesterday, representatives of the four credit rating agencies raised the issue with Reserve Bank governor Bimal Jalan and other bank officials.
The four agencies - Credit Rating Information Services of India Ltd (Crisil), Investment Information and Credit Rating Agency of India (Icra), Credit Analysis and Research (Care) and Duff and Phelps Credit Rating India Private Ltd (DCR India)- discussed the new measures taken on regulating the NBFCs and their likely impact.
The RBI informed them they have met representatives from the industry. Among the issues discussed included the revision of ratings of NBFCs by the agencies subsequent to the new guidelines and the differences in the rating among the agencies.
He said that the RBI had reiterated its stand that there was nothing sacrosanct about the December deadline set for refunding of deposits by those NBFCs that were not fulfilling the relevant criteria.
The credit rating officials apparently have come back with a feeling that the RBI would revise some of the criteria announced earlier. It was however clear that RBI wanted stringent norms.
The agencies intend to begin discussions with their clients within a weeks time by when RBIs stand would be clearer. The agencies are supposed to discuss the alternate fund raising plans of NBFCs not fulfilling the rating specification for raising public deposits. Subsequent to the meeting with their clients the agencies would take a view on whether they need to revise the ratings.
