MANU/RPRL/0089/2020

Ministry : Reserve Bank of India

Department/Board : Press Releases

Press Release No. : 2019-2020/2468

Date : 08.06.2020

Notification/ Circulars Referred : Circular DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019 MANU/RMIC/0065/2019 Circular DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019 MANU/RMIC/0065/2019

Citing Reference:
Circular DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019 MANU/RMIC/0065/2019  Referred

Draft Frameworks for Sale of Loan Exposures and Securitisation of Standard Assets

The Reserve Bank has today placed on its website two draft documents for public comments - the 'Draft Framework for Securitisation of Standard Assets' and 'the Draft Comprehensive Framework for Sale of Loan Exposures'. These guidelines are applicable to all Scheduled Commercial Banks (excluding Regional Rural Banks); All India Financial Institutions (NABARD, NHB, EXIM Bank, and SIDBI); and, all Non-Banking Financial Companies including Housing Finance Companies.

Aimed at development of a strong and robust securitisation market in India, while incentivising simpler securitisation structures, the revised guidelines attempt to align the regulatory framework with the Basel guidelines on securitisation that have come into force effective January 1, 2018. The revisions also take into account the recommendations of the Committee on Development of Housing Finance Securitisation Market in India (Chair: Dr. Harsh Vardhan) and the Task Force on the Development of Secondary Market for Corporate Loans (Chair: Shri T.N. Manoharan), which were set up by the Reserve Bank in May, 2019.