The RBI has issued new Directions for NBFC securitisation transactions, tightening asset eligibility, retention norms, and disclosures. The move aims to improve transparency, align incentives, and safeguard financial stability.
The 2025 Directions mandate stronger Board oversight, professional directors, and clear separation between governance and management. The key takeaway is enhanced accountability and ethical conduct across rural co-operative banks.
Fresh directions overhaul how NBFCs can declare dividends, linking payouts to capital adequacy, asset quality, and regulatory compliance to safeguard financial stability.
The regulator has issued fresh directions requiring transparent, board-approved lending rates and safeguards against usurious interest. Banks must disclose rate ranges and justify total borrowing costs.
Fresh directions mandate board-approved policies and graded exposure limits to reduce borrower, unit, and sector concentration risks. The key takeaway is stricter prudential control with immediate applicability.
The 2025 Directions lay down a clear, two-stage approval framework for voluntary amalgamations, ensuring financial strength, governance reforms, and depositor protection during rural bank consolidation.
The Directions introduce stricter governance, sectoral lending curbs, and enhanced Board oversight to strengthen credit risk management in rural co-operative banks.
The RBI has laid down stricter prudential conditions for UCBs to declare dividends. Only banks meeting capital adequacy, asset quality, and compliance benchmarks can distribute profits.
The regulator has introduced comprehensive rules on income recognition, asset classification, and provisioning for rural co-operative banks. The move tightens NPA identification and strengthens transparency in financial statements.
The 2025 framework tightens norms on issuance, pricing, consent, and customer protection for NBFC-issued credit cards, aiming to curb mis-selling and unfair practices.
