09 July 2024
For systematically important non-deposit taking non-banking financial companies (NBFCs-ND-SI), the provisioning requirement on standard assets has indeed seen changes over time. As per the latest guidelines and updates from the Reserve Bank of India (RBI), the provisioning requirement for standard assets for such NBFCs is set at:
- **0.40% (40 basis points)** of the outstanding standard assets.
This change was implemented by the RBI as part of its efforts to strengthen the financial position and resilience of NBFCs. The revision from 0.35% to 0.40% became effective for provisioning purposes.
Therefore, for your January 2021 exam, the applicable provisioning requirement would be **0.40%**.
### Summary: - **Previous Provisioning Rate**: 0.35% - **Current Provisioning Rate**: 0.40% (applicable from the effective date as per RBI guidelines).
Make sure to refer to the most recent study materials or guidelines issued by the exam authorities to confirm this information, as regulatory guidelines can be subject to changes and updates.
CAclubindia
