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RBI Changes Risk-Weight Norms, Making Loans Costlier For NBFCs

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On Friday, the Reserve Bank of India tightened norms so as to make lending costlier for non-banking financial companies or NBFCs. An NBFC which owes the bank Rs. 200 crore or more and is un-ratedwill attract a risk-weight of 150%. Also, any other NBFC to which banks have an exposure of Rs. 100 crore or more, and was previously rated but now come in the un-rated category will also attract a risk weight of 150%.

 RBI Changes Risk-Weight Norms, Making Loans Costlier For NBFCs
 

So, the risk-weight norms for NBFCs have been made stringent at par with corporate.

The move comes at a time when there is a fair deal of liquidity crisis in the money markets.

And in the recent times, HFCs and NBFCs are facing serious liquidity and financing pressure due to asset liability mismatch and corporate governance failure.

GoodReturns.in

Read more about: rbi loan nbfc
Story first published: Saturday, February 23, 2019, 9:53 [IST]
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