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RBI tightens investment norms for RNBCs

Written by: Staff
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Mumbai, Apr 1 (UNI) Reserve Bank of India (RBI) has tightened the investment norms for the residual non-banking companies (RNBCs) from the financial year beginning today.

Under the revised scheme for maintenance of directed investments by RNBCs, RBI has modified the pattern of the investments and bifurcated the aggregate liabilities to the depositors (ALD) under two heads - ALD as on December 31 last year and incremental ALD.

Incremental ALD means liabilities to the depositors exceeding the aggregate amount of the former, as on December 31 last year. Under the modified norms, not more than five per cent of the ALD as on December 31 last year (incremental ALD) or one time of net-owned fund of the company, whichever is less, could be used for discretionary investments upto March 31 next year.

This is against the current discretionary investment of about 10 per cent of the total deposits. There will be no discretionary investment of the total public deposits from April one next year, RBI has notified.

In this context, RBI has provided an illustrative position, as regards the computation of the investment pattern of RNBCs from the present financial year.

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