NBFC- All Deposit Taking NBFCs – CRAR Fifteen per cent w.e.f. March 31, 2012

CIRCULAR NO. DNBS.PD/CC.NO.211/03.02.002/2010-11, DATED 17-2-2011

In terms of paragraph 16 of Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, every deposit taking NBFC shall maintain a minimum capital ratio consisting of Tier I and Tier II capital, which shall not be less than 12% of its aggregate risk weighted assets on balance sheet and of risk adjusted value of off-balance sheet items. However, in terms of paragraph 16 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, dated February 22, 2007, every systemically important non-deposit taking NBFC (NBFC-ND-SI) has to maintain a minimum capital ratio consisting of Tier I and Tier II capital, which shall not be less than 15% of its aggregate risk weighted assets on balance sheet and of risk adjusted value of off-balance sheet items by March 31, 2011.

2. It has been decided to align the minimum capital ratio of all deposit taking as well as systemically important non-deposit taking NBFCs to 15%. Accordingly, all deposit taking NBFCs shall maintain a minimum capital ratio consisting of Tier I and Tier II capital, which shall not be less than 15% of its aggregate risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items w.e.f. March 31, 2012. Accompanying notification No. DNBS.224/CGM (US) – 2011, dated February 17, 2011 is enclosed for compliance.

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Category : Fema / RBI (3502)
Type : Circulars (7806) Notifications/Circulars (32180)
Tags : RBI Notifications (1976)

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