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NBFCs capital adequacy norms tightened

Reserve Bank of India has raised the Capital adequacy norms with immediate effect to prevent the financial irregularities and make the non-banking financial Companies (NBFCs) safer. The Reserve Bank of India (RBI) on Monday (2nd June 2008) asked non-deposit taking NBFCs to raise the minimum Capital to Risk-weighted Assets Ratio (CRAR) from 10% now to 12% with immediate effect and further to 15% with effect from April 1, 2009.

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Reserve Bank of India has raised the Capital adequacy norms with immediate effect to prevent the financial irregularities and make the non-banking financial Companies (NBFCs) safer. The Reserve Bank of India (RBI) on Monday (2nd June 2008) asked non-deposit taking NBFCs to raise the minimum Capital to Risk-weighted Assets Ratio (CRAR) from 10% now to 12% with immediate effect and further to 15% with effect from April 1, 2009.

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