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The Reserve Bank of India (RBI) has directed the upper layer Non-banking financial companies (NBFCs) to maintain a 0.25 percent provisions for the funded amount outstanding while giving out housing loans and loans to small and Micro enterprises as mentioned in the latest norms on standard assets provisioning fir these types of shadow lenders.
Standard Asset can be defined as “Standard Asset is one that does not disclose any problems and does not carry more than normal risk attached to the business. Such an asset should not be an NPA. “
Norms for Standard asset provisioning for upper layer NBFCS released
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