Year 2023 in retrospect: Regulatory changes for NBFCs
Aanchal Kaur Nagpal | Senior Manager Watch our regulatory round series on YouTube here
Author Archive for: aanchal
Entries by Aanchal Kaur Nagpal
Meeting priority sector lending shortfalls: One more option
Aanchal Kaur Nagpal, Manager | finserv@vinodkothari.com Background All scheduled commercial banks (including Regional Rural Banks and Small Finance Banks) are required to undertake priority sector lending. RBI mandates PSL to account for at least 40% of a bank’s Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off‐Balance Sheet Exposure whichever is higher, in accordance […]
Market-linked debentures: Is it the end of the market for them?
– Aanchal Kaur Nagpal, Manager | finserv@vinodkothari.com Tax proposal to tax gains on MLDs as short-term capital gains The Budget proposes that the capital gains on market linked debentures (MLDs) will be taxed as short term capital gain. Presently, MLDs are mostly listed, and as listed securities they have 2 advantages: Market linked debentures is […]
Group NBFCs’ assets to be aggregated for middle layer classification: RBI clarification
– Aanchal Kaur Nagpal, Manager | aanchal@vinodkothari.com RBI vide notification dated October 11, 2022, has clarified that the assets of NBFCs forming part of a group will be aggregated for determination of the “middle layer” status of NBFCs. This clarification dates back to the 1st of October and therefore, as on the effective date of […]
Outsourcing (Direct Selling Agent) v. Business Correspondent route
– Aanchal Kaur Nagpal, Manager (finserv@vinodkothari.com) If everything’s a priority, then nothing’s a priority. Focusing on core activities while leaving non-core functions sub-contracted to specialized experts has been one of the key modus operandi to achieve efficiency. Banks and other financial institutions are increasingly outsourcing various financial activities ranging from onboarding customers to payment recovery. […]