Nbfc provision

Provisioning for Standard Assets

8.14 At present, every NBFC is required to make a provision for standard assets at 0.25% of the outstanding. On a review of the same, the provision for standard assets for NBFCs-ND-SI and for all NBFCs-D, is being increased to 0.40%. The compliance to the revised norm will be phased in as given below:

• 0.30% by the end of March 2016

• 0.35% by the end of March 2017

• 0.40% by the end of March 2018

Source: RBI/2014-15/299 - DNBR (PD) CC.No. 002/03.10.001/2014-15 circular

Link: https://rbi.org.in/scriptts/NotificationUser.aspx?Id=9327