RBI vide Master Circular dated 1st April 2022 give details regarding Bank finance to non – banking Financial Companies (NBFCs)
Purpose To lay down the Reserve Bank of India’s regulatory policy regarding financing of NBFCs by banks.
Applicability To all Scheduled Commercial Banks (excluding Regional Rural Banks).
The circular include
Bank finance to NBFC registered with RBI
Bank finance to NBFC not requiring Registration
Activities not eligible for bank credit
Bank Finance to Factoring Companies
Other Prohibitions on Bank Finance to NBFCs
Prudential ceilings for exposure of banks to NBFCs
Restrictions regarding investments made by banks in securities / instruments issued by NBFCs
For the details: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/14MCBANKFINANCENBFCS26B13292BD264D288A08CA302FE854E1.PDF
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