NBFCs can now sign up to become Business Correspondents
Removing an earlier restriction that the Reserve Bank had placed on NBFCs, the RBI today has restored the permission for non-deposit taking NBFCs (NBFC-ND) to become Business Correspondents (BCs) to commercial banks, as recommended by the Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households (CCFS).
A summary of NBFC-MFI Directions – August 2012
On August 03, 2012, RBI came out with its ‘Non Banking Financial Company-Micro Finance Institutions’ (NBFC-MFIs) – Directions – Modifications’1 via which RBI has made changes to Directions issued on December 02, 2011 in light of representations received by it from NBFCs functioning in the microfinance sector.
Response to the Report of the Working Group on the Issues and Concerns in the NBFC Sector
NBFCs play a critical role in furthering the goal of financial inclusion. It is our view that in order to make access to financial services universal, while ensuring systemic stability, we need to build on the separate natural strengths of banks and NBFCs.
Funding options for non-bank originators – Mezzanine instruments
Recently, we flagged off our new blog series on financing options for non-bank originators with our first post that explored debt-funding options in some depth.
Effect of IFRS on Banks & NBFCs
Recently, I had the opportunity to attend a discussion on International Financial Reporting Standards (IFRS) which was attended by chartered accountants and key financial stakeholders.
Who should govern NBFCs?
Does the RBI’s claim to regulate NBFC (MFIs) have more merit than Federal state governments’ claims? An analysis of constitutional provisions by Vishnu Peri, IFMR Mezzanine Finance.
