Updates to RBI’s PSL Directions: Clarifications and Minor Amendments
Harshita Malik | finserv@vinodkothari.com
Refer our detailed write-up on the topic titled as Bank-NBFC Partnerships for Priority Sector Lending: Impact of New Directions
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Trade Receivables Financing: Tale of 3 Modalities
/0 Comments/in Factoring, Financial Services, NBFCs, RBI /by StaffDayita Kanodia | Finserv@vinodkothari.com
Trade receivables form an important part of working capital, and given the increasing trend toward the provision of buyers’ credit, occupying an ever-increasing part thereof. Traditionally, it is funded by usual modes of working capital funding. However, businesses have been searching for alternative modes of receivables financing.
Read more →RBI amends TLE Directions
/0 Comments/in Banks, Financial Services, NBFCs, RBI, Securitisation /by Team Finserv– Team Finserv | finserv@vinodkothari.com
The Reserve Bank of India (RBI) made certain amendments to the Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 (‘TLE Directions’) on December 05, 2022. The long-awaited welcome move of allowing ARCs to acquire loans falling in 1-60 DPD as well is being well appreciated. Some of the changes seem to be creating a confusion; say not allowing foreign branches of Indian banks to acquire defaulted loans; while others, seem to be providing more clarity; such as clarifying that registration of security interest for the purpose of computing MHP shall mean registration of security interest with CERSAI only.
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