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Relaxation on guidelines to NBFCs on securitisation transactions

In order to encourage NBFCs to securitise/assign their eligible assets, Reserve Bank Of India vide its Notification No. RBI/2018-19/82 dated 29th November 2018 has decided to relax the Minimum Holding Period (MHP) requirement for originating NBFCs. MHP in respect of loans of original maturity above 5 years shall be till the receipt of repayment of six monthly instalments or two quarterly instalments, subject to the following requirement:- Minimum Retention Requirement for such securitization / assignment transactions shall be 20% of the book value of loans being securitized / 20% of the cash flows from the assets assigned.

https://www.rbi.org.in/Scripts/NotificationUs er.aspx?Id=11422&Mode=0