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RBI CIRCULAR

                   RBI CIRCULAR

  Non Banking Financial Company-Micro                               in arriving at the average cost of funds of the company
    Finance Institutions (NBFC-MFIs) -                              for the purpose of pricing of credit, other than to the
          Directions - Modifications                                beneficiaries targeted by NSFDC. For this, NBFC-MFIs
                                                                    shall maintain proper record of funds received from
RBI/2015-16/196                                                     NSFDC and the lending out of those funds.

DNBR.CC.PD.No. 069/03.10.01/ 2015-16                           4. Appropriate disclosures in this regard shall be made in
                                                                    the balance sheet of such NBFC-MFIs. The minimum
October 01, 2015                                                    disclosures should include quantum of funds received
                                                                    from NSFDC, cost of such funds, loans disbursed
To                                                                  therefrom, rate of interest on such loans and the
All NBFC-MFIs                                                       number of beneficiaries.
Madam/ Sir
1. In terms of extant instructions on pricing of credit by     5. NBFC-MFIs shall inform the concerned Regional Office
                                                                    of the Reserve Bank of India of their appointment as a
     MFIs, the maximum variance between the minimum                 channelising agent by NSFDC within one month from
     and maximum interest rate on loans cannot exceed 4             the date of such appointment.
     per cent.
                                                               Yours faithfully
2. The National Scheduled Castes Finance & Development         (C.D.Srinivasan)
     Corporation (NSFDC) under the Ministry of Social Justice  Chief General Manager
     & Empowerment, Government of India, has proposed
     to expand its outreach by channelizing funds through                   Change in Bank Rate
     select NBFC-MFIs at lower rate of interest. The
     objective of NSFDC is to work for the economic            RBI/2015-16/194
     empowerment of persons belonging to Scheduled
     Castes living below the Double Poverty Line.              DBR.No.Ret.BC.42/12.01.001/2015-16

3. In order to enable NBFC-MFIs to act as channelizing September 29, 2015

agents of NSFDC, it has been decided that the                  The Chairperson / CEOs of all Scheduled Commercial Banks
condition relating to the maximum variance permitted           /Regional Rural Banks / Local Area Banks / All Primary
shall not be applicable to loans extended by NBFC-MFIs         (Urban) Co-operative Banks / State & Central Co-operative
against funding by NSFDC. The on-lending to individuals        Banks (StCBs / CCBs)
by NBFC-MFIs out of funds of NSFDC shall only be

through direct credit to their accounts with banks. Dear Sir / Madam,

Further, NBFC-MFIs shall exclude borrowing from NSFDC The Bank Rate stands adjusted by 50 basis points from 8.25

BANKING FINANCE |                                                          NOVEMBER | 2015 | 49

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