RBI - Lending by banks to NBFCs for On-Lending

Last updated: 08 April 2021

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The Reserve Bank of India (RBI) has extended the deadline for classifying bank loans to Non-Banking Financial Companies (NBFCs) for on-lending as priority sector lending. This extension, valid until September 30, 2021, aims to ensure continued credit availability to key sectors for economic recovery. Loans to Housing Finance Companies (HFCs) for housing purposes will continue to be eligible on an ongoing basis.

Reserve bank of India RBI/2021-22/15 FIDD.CO.Plan.BC.No.8/04.09.01/2021-22 April 7, 2021 The Chairman/ Managing Director Chief Executive Officer All Scheduled Commercial Banks (Excluding Regional Rural Banks, Small Finance Banks, Urban Co-operative Banks and Local Area Banks) Dear Si

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FAQ :

The notification extends the priority sector lending (PSL) classification for bank loans to NBFCs for on-lending.

The extension is valid until September 30, 2021.

All Scheduled Commercial Banks, excluding Regional Rural Banks, Small Finance Banks, Urban Co-operative Banks, and Local Area Banks.

Yes, bank loans to Housing Finance Companies (HFCs) for on-lending for housing purposes will continue on an ongoing basis.

Existing loans disbursed under the on-lending model will continue to be classified under Priority Sector until their repayment or maturity date.

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Notification No : RBI/2021-22/15 FIDD.CO.Plan.BC.No.8/04.09.01/2021-22
Published in Community & General
Source : https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12069&Mode=0

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