Guidelines for Securitization of Standard Assets and Transfer of Credit Exposure

Guidelines for Securitization of Standard Assets and Transfer of Credit Exposure

Question : On which date has RBI issued guidelines for securitization of standard assets and transfer of credit exposure ?
a. 24 September 2021
b. 22 September 2021
c. 18 September 2021
d. None of the above
Ans. a.
Related facts —

RBI issued guidelines for securitization of standard assets and transfer of credit exposure on September 24, 2021.
Key points —
Master Direction – Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021 —

  1. These directions shall be called the Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021.
  2. These directions shall come into force with immediate effect.
  3. Applicability — These directions shall be applicable to Scheduled Commercial Banks (excluding Regional Rural Banks); All India Term Financial Institutions (NABARD, NHB, EXIM Bank, and SIDBI); Small Finance Banks (as permitted under Operating Guidelines for Small Finance Banks dated October 6, 2016 and as amended from time to time); and, All Non-Banking Financial Companies (NBFCs) including Housing Finance Companies (HFCs).
  4. General requirements for securitization — The minimum ticket size for issuance of securitisation notes shall be Rupees 1 crore.
    Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 —
  5. These directions shall be called the Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021.
  6. These directions shall come into force with immediate effect.
  7. Applicability — These directions shall be applicable to Scheduled Commercial Banks; Regional Rural Banks; Primary (Urban) Co-operative Banks/State Co-operative Banks/District Central Co-operative Banks; All India Financial Institutions (NABARD, NHB, EXIM Bank, and SIDBI); Small Finance Banks; and All Non Banking Finance Companies (NBFCs) including Housing Finance Companies (HFCs).
  8. The transferor can transfer loans only after a minimum holding period (MHP), as prescribed below, which is counted from the date of registration of the underlying security interest:
    a. Three months in case of loans with tenor of up to 2 years;
    b. Six months in case of loans with tenor of more than 2 years.

Link:
https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12166