RBI allowed banks to provide PCE to NBFC bonds

Posted on:03 Nov 2018 12:22:48
RBI allowed banks to provide PCE to NBFC bonds
03 November 2018 Current Affairs:

The Reserve Bank of India (RBI) permitted banks to provide Partial Credit Enhancement (PCE), or a partial guarantee, to bonds issued by systematically important Non-Banking Financial Companies (NBFC) and Housing Finance Companies (HFC). The move is to enhance their liquidity position. 
It also said that the bonds backed by PCE from banks should only be utilised for refinancing the existing debt of the NBFC-ND-SIs/HFCs. Banks should introduce appropriate mechanisms to ensure that the end-use condition is met. The exposure of a bank by way of PCEs to bonds issued by each such NBFC-ND-SI/HFC shall be restricted to 1% of capital funds of the bank within the extent single/group borrower exposure limits.

The Reserve Bank of India (RBI) permitted banks to provide Partial Credit Enhancement (PCE), or a partial guarantee, to bonds issued by systematically important Non-Banking Financial Companies (NBFC) and Housing Finance Companies (HFC). The move is to enhance their liquidity position. 
It also said that the bonds backed by PCE from banks should only be utilised for refinancing the existing debt of the NBFC-ND-SIs/HFCs. Banks should introduce appropriate mechanisms to ensure that the end-use condition is met. The exposure of a bank by way of PCEs to bonds issued by each such NBFC-ND-SI/HFC shall be restricted to 1% of capital funds of the bank within the extent single/group borrower exposure limits.




Daily Current Affairs Videos Video Link
24th April 2019 Current Affairs Video
23rd April 2019 Current Affairs Video
22nd April 2019 Current Affairs Video
20th April 2019 Current Affairs Video
19th April 2019 Current Affairs Video
Watch more Current Affairs Videos



Monthly Current Affairs

Fresherslive telegram Group

Current Affairs Section

Daily Current Affairs Quiz


Subscribe to Current Affairs

Enter your email to get daily current affairs
SUBSCRIBE

Currentt Affairs 2019 April

24 APRIL
NEWS
23 APRIL
NEWS
22 APRIL
NEWS
21 APRIL
NEWS

Currentt Affairs 2019 March

31 MARCH
NEWS
30 MARCH
NEWS
29 MARCH
NEWS
28 MARCH
NEWS

Currentt Affairs 2019 February

28 FEBRUARY
NEWS
27 FEBRUARY
NEWS
26 FEBRUARY
NEWS
25 FEBRUARY
NEWS




×

₹ 249

₹ 1000

Only 11 days left !