RBI tightens loan approval norms for NBFCs, rules to come into effect from October 1
RBI on Tuesday announced several rules for Non-Banking Financial Company.
RBI: The Reserve Bank of India (RBI) on Tuesday announced several rules for Non-Banking Financial Company (NBFC). RBI is going to tighten the loan approval norms for NBFCs distributing loans to its directors and their relatives. This strict rule for loans has been implemented for directors of large and medium NBFCs.
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RBI said that loans of Rs 5 crore or more would be possible only after the approval of the board. The bank further said that if a director is a partner in a firm, strictness will apply to him as well. Apart from this, builders will get the loan only when the project gets all the government approvals.
These rules of strictness in giving loans will be applicable from October 1, 2022.
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