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RBI/2017-18/181
DNBR (PD) CC.No.092/03.10.001/2017-18
May
31, 2018
All Government NBFCs
Madam/ Sir,
Withdrawal of Exemptions Granted
to Government Owned NBFCs
Government owned companies, as
defined under Clause (45) of Section 2 of the Companies Act, 2013 (Section
617 of the Companies Act, 1956) and registered with the Reserve Bank of
India as NBFCs, are currently exempt from following regulatory and
statutory provisions:
(i) Sections 45-IB and 45-IC of
the RBI Act, 1934.
(ii) Master Direction - Non-Banking Financial Company -
Systemically Important Non-Deposit taking Company and Deposit taking
Company (Reserve Bank) Directions, 2016 and Master Direction - Non-Banking Financial Company –
Non-Systemically Important Non-Deposit taking Company (Reserve Bank)
Directions, 2016 (except provisions contained in paragraph 23
of these Directions).
(iii) Master Direction - Non-Banking Financial Companies
Acceptance of Public Deposits (Reserve Bank) Directions, 2016 (except
provisions contained in paragraph 36, 37 and 41 of these Directions).
2. On a review, it has been
decided to make the NBFC regulations applicable to Government NBFCs as per
the timeline indicated in the Annex to
this circular. Government NBFCs that are already complying with the
prudential regulation as per the road map submitted by them shall continue
to follow the same.
3. Master Directions on
Exemptions from the provisions of RBI Act, 1934, Non-Banking Financial Company – Non-Systemically
Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, Non-Banking Financial Company - Systemically Important
Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016 and Non-Banking
Financial Companies Acceptance of Public Deposits (Reserve Bank)
Directions, 2016, have been updated accordingly.
4. Necessary notification
withdrawing the exemption under section 45 NC of the RBI Act, 1934 shall be
issued separately.
Yours faithfully
(Manoranjan Mishra)
Chief General Manager
Annex
Timeline
for Government NBFCs
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Norm
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Extant
Provisions for other NBFCs
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Govt.
NBFCs Timeline
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Prudential
Regulation
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Income recognition
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As prescribed
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Balance Sheet dated March 31,
2019
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Asset Classification
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NBFC-NDSI and
NBFCs-D – 90 days norm
NBFCs-ND – 180 days norm
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NBFC-NDSI and NBFCs-D
120 days – March 31, 2019
90 days – March 31, 2020
NBFCs-ND
180 day norm – March 31, 2019
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Provisioning requirement
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For NPAs – As specified in the
Directions.
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As on March 31, 2019– 100% of
prescribed requirement
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For Standard Assets
NBFC-NDSI and NBFCs-D- 0.40%
NBFCs-ND – 0.25%
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Capital Adequacy
Applicable to NDSI and NBFC –D
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CRAR – 15%
Tier 1 – 10%
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10% (min Tier I – 7%;
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March 31, 2019
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12% (min Tier I – 8%)
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March 31, 2020
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13% (min Tier I – 9%)
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March 31, 2021
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15% (min Tier I – 10%)
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March 31, 2022
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Leverage Ratio
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Applicable to NBFC –ND
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A roadmap for adherence by
March 31, 2022 to be prepared by the Govt. NBFC - ND
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Concentration of credit/
investment
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As prescribed
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Govt. companies set up to
serve specific sectors may approach the Reserve Bank for exemptions, if
any. For others, the timeline will be up to balance Sheet dated
March 31, 2022.
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Others
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Corporate Governance etc.
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As prescribed
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Balance Sheet dated March 31,
2019
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Conduct of Business
Regulations (Fair Practices Code)
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As prescribed
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Balance Sheet dated March 31,
2019
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Acceptance
of Deposit Directions
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Deposit Directions
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As prescribed for NBFC-D
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• Investment Grade Credit
rating for acceptance of public deposits- March 31, 2019.
• A Govt. NBFC-D having investment grade credit rating can accept
deposits only upto 1.5 times of its NOF. Govt. NBFCs holding deposits in
excess of the limit shall not access fresh deposits or renew existing
ones till they conform to the limit, the existing deposits will be
allowed to run off till maturity.
• All other directions shall apply from Balance Sheet dated March 31,
2019.
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Statutory
Provisions
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Sec 45 IB
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Maintenance of percentage of
assets – 15% of the outstanding deposits
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March 31, 2019 – 5% of
outstanding deposits
March 31, 2020 – 10% of outstanding deposits
March 31, 2021 – 12% of outstanding deposits
March 31, 2022 – 15% of outstanding deposits
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Sec 45 IC
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Reserve Fund
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March 31, 2019
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