COMMITTEE SUGGESTS SWEEPING MEASURES TO FIRM UP NBFCs
Article Abstract:
The Vasudev Committee set up by the Government of the India has recommended that non banking finance companies (NBFC) with net owned funds (NOF) of less than Rs25 lakh should not be allowed to raise deposits. Equipment and hire purchase companies without credit rating must be allowed to raise funds 1.5 times its NOF or Rs10 crore whichever is lower. It has recommended a higher capital-to-risk asset ratio of 15 percent for NBFCs. Liquid asset ratio can be increased to 25 percent of deposits. The Reserve Bank of India should fix the ceiling for exposure of NBFCs in real estate sector. RBI should fix a higher ceiling for public deposits for those companies which have obtained rating for their instruments. (rk)
Comment:
The Vasudev Committee set up by the Government of the India has recommended that non banking finance companies (NBFC) with net owned funds (NOF) of less than Rs25 lakh should not be allowed to raise deposits.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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RBI SUFFERS Rs1,826-CR LOSS ON FCNRA DEPOSITS
Article Abstract:
The Reserve Bank of India is to give Rs1,826 crore to the India government due to the losses accumulated in 1997-98 under the old foreign currency non-resident (account) deposits, called FCNRA deposits. The losses were a result of extending exchange risk guarantee on the FCNRA deposit scheme by the government. The scheme managed to raise $7 billion before being stopped on August 14, 1994, but the last tranche of deposits under the scheme matured for redemption on August 14, 1997. The total loss to the government from the FCNRA deposit scheme stands at Rs9,622 crore (about $3 billion). (khr)
Comment:
Will give Rs1,826 crore to India govt due to losses accumulated in 1997-1998 under old foreign currency non-resident deposits
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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