NBFCs need permission to alter credit/investment ceilings: RBI

The Reserve Bank of India (RBI) has directed all non-deposit taking NBFCs with assets of Rs100 crore and above to seek its permission for making any modifications to the ceilings in regard to credit concentration and investment norms.

Any systemically important non-deposit taking non-banking financial company not accessing public funds, either directly or indirectly, should make an application to the Reserve Bank of India for modifications in the prescribed ceilings with regard to concentration of credit / investment norms, RBI said in a release.

RBI has amended a its earlier directive to read: "Provided further that any systemically important non-deposit taking non-banking financial company not accessing public funds, either directly or indirectly, or not issuing guarantees may make an application to the Bank for an appropriate dispensation consistent with the spirit of the exposure limits".

Since such NBFCs may also be issuing guarantees and devolvement of these guarantees might require access to public funds, RBI has advised them to approach its regional offices for appropriate dispensation.