(1.) Refinancing
of Project Loans
RBI Circular:
Circular No: RBI/2015-16/417,
DNBR.CC.PD.No.082/03.10.001/2015-16 dated June 2 2016
Applicability:
All Non-Banking Financial Companies
Crux of the Circular:
Through this circular it has now been
decided to extent the instructions on refinancing that were applicable earlier
to All Scheduled Commercial Banks to be extended to NBFCs also.
As per this circular, NBFCs may refinance
any existing infrastructure and other project:
- by way of take-out
financing,
- without any
pre-determined agreement with other lenders
- fixing a longer
repayment period
However, it shall not be considered as restructuring
if the following conditions are satisfied:
i.
Such
loans should be 'standard' in the books of the existing lenders, and should
have not been restructured in the past;
ii.
Such
loans should be substantially taken over (more than 50% of the outstanding loan
by value) from the existing financing lenders; and
iii.
The
repayment period should be fixed by taking into account the life cycle of the
project and cash flows from the project.
For
existing project loans where the aggregate exposure of all institutional
lenders is minimum Rs. 1,000 crore, however, NBFCs may refinance such loans by
way of full or partial take-out financing, even without a pre-determined
agreement with other lenders, and fix a longer repayment period, and the same
would not be considered as restructuring in the books of the existing as well
as taking over lenders, if the following conditions are satisfied:
i.
The
project should have started commercial operation after achieving Date of
Commencement of Commercial Operation (DCCO);
ii.
The
repayment period should be fixed by taking into account the life cycle of and
cash flows from the project, and, Boards of the existing and new lenders should
be satisfied with the viability of the project. Further, the total repayment
period should not exceed 85% of the initial economic life of the project /
concession period in the case of PPP projects;
iii.
Such
loans should be 'standard' in the books of the existing lenders at the time of
the refinancing;
iv.
In
case of partial take-out, a significant amount of the loan (a minimum 25% of
the outstanding loan by value) should be taken over by a new set of lenders
from the existing financing lenders; and
v.
The
promoters should bring in additional equity, if required, so as to reduce the
debt to make the current debt-equity ratio and Debt Service Coverage Ratio
(DSCR) of the project loan acceptable to the NBFCs.
5.
A lender who has extended only working capital finance for a project may be
treated as 'new lender' for taking over a part of the project term loan as required
under the guidelines.
6.
The above facility will be available only once during the life of the existing
project loans.
Source:
(2.)
Credit Information
Reporting in respect of Self Help Group (SHG) members
RBI Circular and Notification:
Circular No. RBI/2015-16/424 DBR.CID.BC.No.104/20.16.56/2015-16 dated June 16, 2016
Notification No. RBI/2015-16/424, DBR.CID.BC.No.104/20.16.56/2015-16 dated June 16, 2016
Applicability:
All
Scheduled Commercial banks (including RRBs)
All
Non-Banking Financial Companies (NBFCs)
All
Primary (Urban) Co-operative Banks,
State
/ Central Co-operative Banks
All
Credit Information Companies
Crux of the Circular:
- It has been decided to incorporate the SHG member level data into the existing Microfinance data file format
- Further, the Microfinance data file to be submitted to all the four CICs from July 1, 2016
Source:
(3.)
Reporting of Information on
Investment in Commercial Papers and Unhedged Foreign Currency Exposures of the Borrowers
to Credit Information Companies
RBI Circular and Notification:
Circular no: RBI/2015-16/432, DBR.CID.BC. 107/20.16.056/2015-16 dated June 23, 2016
Notification no: RBI/2015-16/432, DBR.CID.BC. 107/20.16.056/2015-16 dated June 23, 2016
Applicability:
All
Scheduled Commercial Banks
All
India Financial Institutions
Credit
Information Companies
Crux of the Circular:
- Based on the inputs
of the Technical Group on Credit Information set up by RBI and coordinated by
CIBIL, it has been decided to capture the information on Commercial Papers
(CPs) and Un-hedged Foreign Currency Exposure (UFCE) in addition to the
existing information that is required to be captured.
Reporting
- Further, the
following shall be reported in the required format to all the four credit
information companies (CICs) with effect from July 1, 2016:
On
a monthly basis
o
the
information on CPs issued by the companies
o
the
information on any default in the redemption of the relevant CP issue shall be
reported by IPA
Note: The investing
credit institutions need not report the information on CPs to the CICs.
On a quarterly basis
- The
information regarding UFCE of individual borrowers.
Source:
(4.)
Format
of Statutory Auditors’ Certificate (SAC) to be submitted by NBFCs
RBI Circular and Notification:
Circular no: RBI/2015-16/433, DNBS (PPD) CC.No./04/66.14.001/2015-16 dated June 23, 2016
Notification no. RBI/2015-16/433, DNBS (PPD) CC.No./04/66.14.001/2015-16 dated June 23, 2016
Applicability:
All
NBFCs (excluding RNBCs) and
Members
of ICAI
Crux of the Circular:
For the purpose of ensuring consistency in the manner in which the information is received from the Auditors, it has been decided to introduce a uniform format of the Statutory Auditor Certificate (SAC).
In this regard the NBFCs are required to fill in the information, as required, in COSMOS and to scan and upload the SAC in COSMOS https://cosmos.rbi.org.in under the menu Upload Returns > Statutory Auditors Certificate. The format of the SAC is attached herewith.
Source:
(5.)
Pre-2005
series of Banknotes - Revision of exchange facility
RBI Circular:
Circular no: RBI/2015-16/443, DCM (Plg) No.G-12/4297/10.27.00/2015-16 dated June 30, 2016
Applicability:
All
the banks, companies, body corporate and citizens of India
Crux of the Circular:
-
With
effect from July 1, 2016 the public is directed to approach one of the
following offices of RBI to exchange the pre-2005 banknotes (that are available
with them currently) for new notes.
RBI Offices: Ahmedabad, Bengaluru, Belapur, Bhopal,
Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur,
Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, Thiruvananthapuram and
Kochi.
-
The pre-2005 banknotes will continue to remain
legal tender.
Source:
(6.) Foreign Exchange Management (Foreign
currency accounts by a person resident in India) Regulations, 2015
RBI Notification:
Notification No.FEMA 10 (R) /2015-RB dated June 1, 2016
Applicability:
Person
resident in India
Crux of the Notification:
Through this notification, the Reserve Bank of India has:
- Made certain regulations for opening, holding and maintaining Foreign Currency Accounts.
- Specified the limits up to which amounts can be held in such accounts by a person resident in India
The complete notification is available in the below link
Source:
(7.) Scheme for Sustainable Structuring
of Stressed Assets
RBI Notification:
Notification No. RBI/2015-16/422, DBR.No.BP.BC.103/21.04.132/2015-16 dated June 13, 2016
Applicability:
All
Scheduled Commercial Banks (Excluding RRBs),
All-India
Term-lending and Refinancing Institutions (Exim Bank, NABARD, NHB and SIDBI)
Non-Banking
Financial Companies
Securitisation
Companies/ Reconstruction Companies
Crux of the Notification:
- For the purpose of strengthening the
lenders’ ability to deal with stressed assets, RBI had been issuing various
guidelines and prudential norms on stressed assets resolution from time to
time.
- As banks have represented for
permitting them more time to write down the debts and to make the required
provisions in case of resolution of large accounts, the RBI after due
consultation with the banks has decided to facilitate the resolution of large
accounts for the purpose of ensuring the performance of adequate deep financial
restructuring, thus enabling the projects a chance of sustained revival.
- This scheme shall
be applicable to those accounts only who meet the following conditions:
o
The
project has commenced commercial operations;
o
The
aggregate exposure (including accrued interest) of all institutional lenders in
the account is more than Rs.500 crore (including Rupee loans, Foreign Currency
loans/External Commercial Borrowings,);
o
The
debt meets the test of sustainability as outlined in this notification.
Source:
(8.) Permitting writing of options
against contracted exposures by Indian Residents
RBI Notification:
Notification No. RBI/2015-16/431, A.P. (DIR Series) Circular
No. 78 dated June 23, 2016
Applicability:
All
Category - I Authorised Dealer Banks
Indian
Residents
Crux of the Notification:
- For the purpose of
encouraging participation in the Over the Counter (OTC) currency options market
and for the purpose of improving its liquidity, it has been decided by RBI
o
to
permit resident exporters and importers of goods and services to write (sell)
standalone plain vanilla European call and put option contracts against their
contracted exposure, i.e. covered call
and covered put respectively, to any AD Cat-I bank in India subject to
operational guidelines and their respective terms and conditions
o
These
operational guidelines shall be reviewed after one year based on experience.
Source:
(9.) Reserve
Bank of India (Financial Statements of All India Financial Institutions -
Presentation, Disclosure and Reporting) Directions, 2016
RBI Master Direction:
Master Direction No. RBI/DBR/2015-16/26,
Master Direction DBR.FID.No.108 / 01.02.000/2015-16 dated June 23, 2016
Applicability:
All India Financial Institutions
(AIFIs) regulated by Reserve Bank of India viz. EXIM Bank, NABARD, NHB and
SIDBI with effect from the quarter ended December 2016.
Crux of the Master Direction:
The
AIFIs shall, prepare a balance-sheet and profit and loss account as on the last
working day of the year or the period, as the case may be, in the form and
manner as prescribed under the respective Acts governing their functioning.
Source:
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