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RBI/2018-19/98
DBR.BP.BC.No.17/21.04.098/2018-19
December
28, 2018
All Scheduled Commercial Banks
(Excluding RRBs) & Small Finance
Banks (SFBs)
Dear Sir,
Basel
III Framework
on Liquidity Standards - Liquidity Coverage Ratio (LCR),
FALLCR against credit disbursed to NBFCs and HFCs
Please refer to our circular dated October 19, 2018 on the
captioned subject.
2. The banks have been permitted
to reckon government securities as Level 1 HQLA under FALLCR within the
mandatory SLR requirement upto 0.5 per cent of the bank’s NDTL in respect
of their incremental lending to NBFCs and HFCs after October 19, 2018. This
facility is available up to December 31, 2018. Further, the single borrower
limit for NBFCs (not financing infrastructure) has been increased from 10
per cent to 15 per cent of capital funds till December 31, 2018.
3. In order to further
facilitate banks to lend to NBFCs and HFCs as indicated above, it has been
decided to extend the aforesaid facilities upto March 31, 2019.
4. It may be noted that with
effect from April 1, 2019, banks shall be guided by the instructions
contained in circular
DBR.No.BP.BC.43/21.01.003/2016-17 dated December 01, 2016 in
terms of which banks’ exposures to a single NBFC shall be restricted to 15
percent of their eligible capital base (Tier-1 capital).
Yours faithfully,
(Saurav Sinha)
Chief General Manager-in-Charge
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