RBI issues revised draft norms for non-fund-based credit facilities
Business Standard [
Mumbai
]
Apr 10, 2025 | Page No.: 5 | Position: Middle Center | Source: Bureau | Sq Cm: 66 | AVE: 33236 | PR Value: 166180
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RBI issues revised draft norms for non-fund-based credit facilities The Reserve Bank of India RBI on provisionsto issue NFB facilities that address The guarantees and a counter- Wednesday issued revised comprehensive aspects like limits granted credit appraisal guarantee issued by an RE guarantor draft norms regulating non-funds-based controls fraud prevention overall should be irrevocable The contractshould NFBs credit limits like letters of credit and monitoring mechanism RBI said in draft not have a clause allowingthe guarantorto guarantees across regulated entities REs norms released forfeedbackfrom unilaterally cancel the same The revision will also cover rules pertaining stakeholders REs should avoid undue concentration to partial credit enhancement PCE provided REs will issue a NFB facility only on behalf of unsecured guarantees and put in place by REs to broaden the funding sources for of a customer having business relationship suitable internal aggregate individual infrastructure financing with it The customer is availing a funded ceilings for issuance of unsecured The credit policy of the REs should have creditfacility or a depositfacilityfrom the RE guarantees BS REPORTER