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News Bulletinby Kanishka

RBI Crackdown: Unveiling the Veil of Corporate Debt Evergreening

In a bold move to safeguard financial stability, the Reserve Bank of India (RBI) has tightened regulations to curb the potential evergreening of non-performing assets (NPAs) by lenders through investments in Alternative Investment Funds (AIFs). This decisive action aims to prevent regulated entities from indirectly funding defaulting companies, ensuring transparency and accountability in the lending ecosystem.

RBI Circular: New Guidelines for NBFCs and HFCs on Credit and Investment Concentration Norms

The Reserve Bank of India (RBI) has issued a circular dated January 15, 2024, introducing new guidelines on credit and investment concentration norms for Non-Banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs). The circular aims to ensure uniformity and consistency in the computation of concentration norms among NBFCs, streamlining practices for better risk management.

RBI Implements Stringent Guidelines to Address Evergreening in AIF Investments by Regulated Entities

The Reserve Bank of India (RBI) has issued guidelines aimed at addressing the practice of “evergreening” in Alternative Investment Funds (AIFs) by Banks and Non-banking Financial Companies (NBFCs). Evergreening involves concealing the true extent of bad loans by allowing delinquent borrowers to take additional loans to repay existing ones. The guidelines prohibit regulated entities from investing in AIF schemes that hold downstream investments in ...

Regulatory Challenges in Downstream Investments by Foreign-Owned or Controlled Companies in India

The presentation addresses the regulatory hurdles in downstream investments in India, particularly focusing on the treatment of investments originating from Foreign Owned and Controlled Companies (FOCCs) under the Foreign Exchange Management Act, 1999 (FEMA, 1999). It highlights the ambiguities and gaps in the regulatory framework, emphasizing the need for uniformity and clarity in the treatment of FOCCs concerning pricing, reporting guidelines, ...

RBI Circular RBI/2023-24/90: Guidelines for AIF Investments by Regulated Entities

The Reserve Bank of India (RBI) issued circular no. RBI/2023-24/90 on December 19, 2023, to address concerns related to investments in Alternative Investment Funds (AIFs) by regulated entities (REs). The circular aims to prevent evergreening practices and ensure transparency in financial operations by prohibiting certain transactions involving AIFs.

RBI Circular Addresses Risks in Alternative Investment Fund (AIF) Transactions

The Reserve Bank of India (RBI) has issued circular RBI/2023-24/90 on December 19, 2023, to address concerns related to investments in Alternative Investment Funds (AIFs) by regulated entities (REs). The circular provides guidelines to mitigate potential risks of evergreening through AIF transactions. It emphasizes the prohibition of specific transactions involving AIFs, substitution of direct loan exposure with indirect exposure through AIF inve ...

RBI Issues Circular on Investments in Alternative Investment Funds (AIFs)

The Reserve Bank of India (RBI) has issued a circular, DOR.STR.REC.85/21.04.048/2023-24, addressing concerns regarding investments in Alternative Investment Funds (AIFs) by regulated entities. The circular provides detailed provisions and implications for investments in AIFs, including clarification on downstream investments, provisioning requirements, applicability of specific paragraphs, deduction from capital, and exclusions from the scope. Th ...

Client Suitability Questionnaire: Enhancing Financial Planning Through Insightful Conversations

The provided questionnaire is designed to assist aspiring financial planners in evaluating client suitability for various investment strategies by understanding their lifestyles and interests. By asking the right questions, financial planners can gain a comprehensive understanding of clients’ needs and goals, leading to the creation of robust and holistic financial plans. The questionnaire covers areas such as personal information, investment goa ...

Understanding IRAs: A Comprehensive Guide to Retirement Savings

This comprehensive guide provides essential information on Individual Retirement Accounts (IRAs), offering insights into the various types of IRAs, their tax advantages, investment strategies, and considerations for choosing the right IRA provider. It aims to demystify the complexities of IRAs and help individuals make informed decisions about their retirement savings.

Essential Tips for Maximizing Your Retirement Savings

Planning for retirement early ensures a secure and comfortable future. Yet, nearly half of Americans find themselves without any retirement savings. This startling statistic underscores the need for proactive financial strategies and planning. Here are essential tips for maximizing your retirement savings, providing you with the information and tools to build a robust financial foundation for your golden years.

Ministry of Finance Allows NABARD to Voluntarily Perform Aadhaar Authentication for Agricultural Loans

The Ministry of Finance has issued a notification allowing the National Bank for Agriculture and Rural Development (NABARD) to voluntarily perform Aadhaar authentication for residents applying for agricultural loans through their portal. This initiative aims to streamline and expedite the loan application process, ensuring efficient delivery of financial services to the agricultural sector. NABARD, while performing Aadhaar authentication, is requ ...

New NPS Rule: Two-Factor Aadhaar Authentication for National Pension System Account Login

The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new security layer, two-factor Aadhaar-based authentication, for all password-based users logging into the Central Record-keeping Agency (CRA) system of the National Pension System (NPS) starting from April 1, 2024. This additional security feature aims to enhance the protection of NPS transactions and safeguard the interests of subscribers and stakeholders.

Unlocking NRO Funds: A Guide for NRIs

Non-Resident Indians (NRIs) often face complexities when transferring funds from their Non-Resident Ordinary (NRO) accounts out of India. This comprehensive guide navigates the intricate process, outlining the necessary documentation, regulatory compliance, and procedural nuances. From source verification to tax implications, this resource empowers NRIs to seamlessly repatriate their hard-earned savings while adhering to the Reserve Bank of India ...

Navigating the Acquisition and Transfer of Immovable Property in India: A Guide for Non-Residents

Investing in India’s real estate market holds a strong appeal for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). However, navigating the acquisition and transfer of immovable property in India can be a complex endeavor, given the regulatory framework of the Foreign Exchange Management Act (FEMA). This article addresses frequently asked questions (FAQs) regarding the rules and restrictions governing the purchase of immovable pr ...

Joint Home Loan EMIs: Shared Responsibility, Shared Benefits

When taking out a joint home loan, both borrowers are equally responsible for making the EMI payments. This shared financial commitment ensures that the loan is repaid on time, protecting the borrowers’ credit scores and enabling them to build equity in the property. By contributing to the EMIs proportionately, joint borrowers can leverage their combined income to qualify for a larger loan amount and potentially secure better interest rates, maki ...