MUMBAI: The Reserve Bank of India (RBI) has sanctioned the scheme of amalgamation of the entire undertaking of SBM Bank (Mauritius) Ltd, India with SBM Bank (India) Ltd.
The Indian outfit has been granted licence by RBI to carry on the business of banking in India through Wholly Owned Subsidiary (WOS) Mode under section 22(1) of the Banking Regulation Act, 1949..
“The scheme will come into force with effect from December 1, 2018. All the branches of SBM Bank (Mauritius) Ltd in India will function as branches of SBM Bank (India) Ltd with effect from December 1, 2018,” the RBI said in its statement.
Rules relaxed to securitise NBFC loans
MUMBAI: The Reserve Bank of India (RBI) eased rules to help non-banking financial companies (NBFCs) shrink their balance sheet in the wake of a growing credit squeeze in the sector.
With the relaxed rules in place, the NBFCs can now securitise or sell loans of longer than five-year maturity after holding those for at least six months on their books against a minimum period of one year earlier.
However, NBFCs can make use of these new nomrs provided they retaikm at least 20 per cent of the size of their loan book, according to an RBI statement.
NBFCs started feeling the stress on their balance sheet following a debt crisis a few months back that hit IL&FS, the large NBFC that focuses on infrastructure funding, spreading panic in the credit market in the country.