Archive for month: January, 2020
RBI further extends relaxation on MHP & MRR requirements till 30th June 2020
/0 Comments/in Financial Services, NBFCs /by Vinod Kothari ConsultantsAiming to curb the situation of the current liquidity crisis in the NBFCs sector of the country, the Reserve Bank of India (RBI), once again, in a gap of 6 months has extended the relaxation to NBFCs with regards to the Minimum Holding Period (MHP) requirements originating on NBFCs.
As a quick recollection of the dispensations provided to the NBFCs vide the circular DNBR (PD)CC.No.95/03.10.001/2018-19 dated November 29, 2018[1] on “Relaxation on the guidelines to NBFCs on securitisation transactions”, the following were the key takeaways of the relaxations as covered in our previous write-up (please click here[2]).
Loans assigned between 31St December, 2019- 30th June, 2020 | Loans assigned after 30th June, 2020 | |
MHP requirements for loans with original maturity less than 5 years | Loans upto 2 years maturity – 3 months
Loans between 2-5 years – 6 months |
Loans upto 2 years maturity – 3 months
Loans between 2-5 years – 6 months |
MHP requirements for loans with original maturity of more than 5 years | Repayments of atleast 6 monthly instalments or two quarterly instalments (as applicable)
If revised MRR requirements fulfilled – 6 months If revised MRR requirements fulfilled – 12 months |
Repayments of atleast 12 monthly installments or four quarterly instalments (as applicable) |
MRR requirements for loans with original maturity of less than 5 years | Loans with original maturity upto 2 years – 5%
Loans with original maturity more than 2 years -10% |
Loans with original maturity upto 2 years – 5%
Loans with original maturity more than 2 years -10% Bullet repayment loans / receivables- 10% |
MRR requirements for loans with original maturity of more than 5 years | If benefit of MHP requirements availed – 20%
If benefit of MHP requirements not availed – 10% |
Loans with original maturity more than 2 years – 10%
Bullet repayment loans / receivables- 10% |
[1] https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11422&Mode=0
[2] http://vinodkothari.com/2018/11/rbi-temporarily-relaxes-the-guidelines-on-securitisation-for-nbfcs/