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Nbfc and sch vi dought urgent

CS BHAVIK HARSHAD SHAH (Company Secretary) (1662 Points)

29 October 2012

hi friends,

Please give me new rate of provison for NBFC which are applicable for nov 12

In amalgmation there are sum somes where we have to prepapre P&L a/c as a part of working note

so we ahve to prepaprwe as per new format or old one is ok

please reply

its very urgent

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***Provision of 0.25% for standard assets of all NBFCs

RBI has issued a notification no. DNBS.PD.CC.No.207103.02.00212010-11 dated January 17, 2011. As per the notification, in terms of Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, and Non- Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, all NBFCs are required to make necessary provisions for non performing assets. In the interests of counter cyclicality and so as to ensure that NBFCs create a financial buffer to protect them from the effect of economic downturns, it has been decided to introduce provisioning for standard assets also.
Accordingly,
(i) NBFCs should make a general provision at 0.25 per cent of the outstanding standard assets.
(ii) The provisions on standard assets should not be reckoned for arriving at net NPAs.
(iii) The provisions towards Standard Assets need not be netted from gross advances but shown separately as ‘Contingent Provisions against Standard Assets’ in the balance sheet.
(iv) NBFCS are allowed to indude the ‘General Provisions on Standard Assets’ in Tier II capital Which together with other ‘general provisions/loss reserves’ will be admitted as Tier II capital only up to a maximum of 1.25 per cent of the total risk-weighted assets.
Notifications No. DNBS. 222 CGM(US)2011 and No. DNBS. 223 CGM (US) 2011 both dated January 17, 2011 are also issued for meticulous compliance of the said norms.

***All Deposit taking NBFCs - CRAR Fifteen percent w.e.f March 31, 2012

In terms of paragraph 16 of Non Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, every deposit taking NBFC shall maintain a minimum capital ratio consisting of Tier I and Tier II capital, which shall not be less than 12% of its aggregate risk weighted assets on balance sheet and of risk adjusted value of off-balance sheet items. However, in terms of paragraph 16 of Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, dated February 22, 2007, every systemically important non-deposit taking NBFC (NBFC-ND-Sl) has to maintain a minimum capital ratio consisting of Tier I and Tier II capital, which shall not be less than 15% of its aggregate risk weighted assets on balance sheet and of risk adjusted value of off-balance sheet items by March 31, 2011. RBI vide circular no. RBII2OIO-1l1408 DNBS.PD/CC.No.211 /03.02.00212010-11 dated February 17, 2011 has decided to align the minimum capital ratio of all deposit taking as well as systemically important non-deposit taking NBFCs to 15%. Accordingly, all deposit taking NBFCs shall maintain a minimum capital ratio consisting of Tier I and Tier II capital, which shall not be less than 15% of its aggregate risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items w.e.f. March 31, 2012.

***Amendment to Definition of Infrastructure Loan under Non-Banking Financial (NonD epositlDeposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

The term “Infrastructure Loan” has been defined in Para 2(viii) of Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 and Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, respectively. It has now been decided to include “Telecom Towers” also as an infrastructure facility for availing credit facility. Thus, amendment of paragraph 2 of the said directions has been made as:
‘In sub-clause (e) of clause (viii) in sub-paragraph (1) of the said Directions, the term “Telecom Towers” shall be inserted before the term “network of trunking.’