Page 57 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) 23062 COPY.indd
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BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
nd
th
NBFCs Current NOF By March 31, 2025 By March 31, 2027
NBFC-ICC `2 crore `5 crore `10 crore
NBFC-M
`5 crore (`2 crore in NE Region) `7 crore (`5 crore in NE Region) `10 crore
FI
NBFC-Factors `5 crore `7 crore `10 crore
However, for NBFC-P2P, NBFC-AA, and NBFC-ML and NBFC-UL
NBFCs with no public funds and no customer a) Internal Capital Adequacy Assessment
interface, the NOF shall continue to be `2 crore.
It is clarified that there is no change in the Process (ICAAP) - NBFCs are required
existing regulatory minimum NOF for NBFCs to make a thorough internal assessment
of the need for capital, commensurate
- IDF, IFC, MGCs, HFC, and SPD
with the risks in their business & make
a realistic assessment of risks factoring
b) NPA Classification - in credit risk, market risk, operational
The extant NPA classification norm stands risk and all other residual risks as per
changed to the overdue period of more than 90 methodology to be determined internally.
days for all categories of NBFCs. A glide path The methodology for internal assessment
is provided to NBFCs in Base Layer to adhere of capital shall be proportionate to the
to the 90 days NPA norm as under scale and complexity of operations
as per their Board approved policy.
NPA Norms Timeline The objective of ICAAP is to ensure
availability of adequate capital to
>150 days overdue By March 31, 2024
support all risks in business as also
>120 days overdue By March 31, 2025 to encourage NBFCs to develop and
use better internal risk management
> 90 days By March 31, 2026 techniques for monitoring and managing
their risks. This will facilitate an active
The glide path will not be applicable to NBFCs dialogue between the supervisors and
which are already required to follow the 90- NBFCs on the assessment of risks and
day NPA norm. Considering the need for monitoring as well as mitigation of the
professional experience in managing the affairs
same.
of NBFCs, at least one of the directors shall
have relevant experience of having worked in Additional regulatory changes under
a bank/ NBFC. Ceiling on IPO Funding – There SBR applicable to NBFC-UL
shall be a ceiling of `1 crore per borrower for
b) Common Equity Tier 1 – In order to
financing subscription to Initial Public Offer enhance the quality of regulatory capital,
(IPO). NBFCs can fix more conservative limits.
NBFC-UL shall maintain Common
Capital Guidelines– Equity Tier 1 capital of at least 9 per cent
Regulatory changes under SBR applicable to of Risk Weighted Assets.
The Institute Of Cost Accountants Of India
57
