NBFCs

'Neutral-to-Positive Impact of RBI's Draft Circular on Govt-Owned NBFCs'

As the risk profile of NBFCs is changing at a fast pace, there was a need for a regulatory framework for dividend declaration. The role of NBFCs in economy is increasing with the rising demand for credit, said Ind-Ra.According to the draft circular, non-deposit and systemically-important NBFCs with capital-to-risk weighted assets ratio below 15 per cent and net non-performing advances above 6 per cent will not be able to pay any dividend.